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Old 01-29-2008, 01:10 PM
 
89 posts, read 379,944 times
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Husband and I purchased our first house half a year ago, and we have been very diligent in paying our mortgages; in fact, we have been making extra monthly payments (1/2 of monthly mortgage) in addition in an attempt to pay off our mortgage in timely manner.

Very good job opportunities arose very recently, but they are all out-of-state opportunities. If we do decide to pursue the opportunities, we will need to sell our house.

Suppopse we would end up putting our house on the market, say, mid this year, which is better for us - keep on paying extra on top of our monthly mortgage, or merely meet the monthly mortgage each month?

Thanks for your help!
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Old 01-29-2008, 01:14 PM
 
Location: The Big D
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Personally, if your pretty sure that you WILL be selling the house I'd stop making the extra payments and put that away in savings for extra living expenses incured w/ the move, towards the down payment of new home purchase, etc. There are always going to be expenses incured when you move so save that money. You MIGHT need it before you can get it out of the sale of your house.
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Old 01-29-2008, 01:46 PM
 
Location: Denver, CO
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I agree with 2DFW but also consider capital gains tax (if you forsee making a profit on the home at all) and whether your future employer will pay that as part of a relo package. If you own less than 2 years, you will pay taxes on the gain.
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Old 01-29-2008, 02:16 PM
 
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Thanks to both!! Great points!
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Old 01-29-2008, 04:23 PM
 
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Yes you will pay taxes on the profit but it gets readjusted for the 6monthts in relation to the max. gain which is $250000 or $500000 if you are married. Also if you have a job relo it changes the tax rule. Most likely you will not have to pay any taxes unless you made such a huge profit. There is a formula to figure this out on my favorite site called irs.gov :-)
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Old 01-29-2008, 08:22 PM
 
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Thanks haberstroh for your reply!!
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Old 01-29-2008, 10:17 PM
 
Location: Salem, OR
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There are exemptions to the capitol gains for some reasons, moving job relocation and health reasons are two that come to the top of my head. I also agree that don't pay the extra. Moving always costs so much more than you think it will.

I don't know how far you are moving but sometimes it is cheaper to sell certain items like a refrigerator with your home, rather than haul it across the country. You might need to buy some things at your new home.

I don't know where you are located, but you do need to consider that you may be renting in another town while your home sells in your current one. You might need to make a rental payment and a house payment. The market is different everywhere, but overall it is taking a while to sell. Save up!
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Old 01-29-2008, 11:05 PM
 
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Great point, Silverfall! We are located in Atlanta and thinking of moving to northeastern cities (that's where job prospects are). If we do move, we will most likely rent first to adapt to the new city, learn more about what are the good areas to settle down and buy house etc.

In this kind of market, we really do not expect to make any kind of profit out though....
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Old 01-30-2008, 08:10 AM
 
Location: NY to FL to ATL
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Quote:
Originally Posted by RelocatingVerySoon View Post
Great point, Silverfall! We are located in Atlanta and thinking of moving to northeastern cities (that's where job prospects are). If we do move, we will most likely rent first to adapt to the new city, learn more about what are the good areas to settle down and buy house etc.

In this kind of market, we really do not expect to make any kind of profit out though....
You never know, there are some pockets in the Atlanta area that are increasing alot. I bought my house a year and a half ago and a similar one in my neighborhood just went under contract for 165K more than I paid.

Good luck!
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Old 01-30-2008, 09:06 AM
 
9,803 posts, read 16,075,198 times
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--------Husband and I purchased our first house half a year ago---
I guess that would mean they owned the house for 6 months.

Why are so many posters talking about capital gains taxes?
Has the housing market picked up so much that there will be a gain on selling a house that was bought 6 months ago ???????
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