Housing Bubble? (Phoenix: to rent, cheap home, employment)

[MN-Born-n-Raised]

Originally Posted by Ripper3785

Enjoying this discussion and sorry for the tangent - Unless you are talking about folks considering withdrawing more than their total contributions before they turn 59-1/2, no taxes will be due on a Roth IRA distribution. Assuming laws don't change.(not a given, crossing fingers for the next umpteen years)

I should not have said Roth. That is post tax income. My bad... I was referring to 401K or KEOG type plans. For years, I refused to fund them and my accountant said that I was crazy. I wanted to know what I had after tax.

The exclusive reason why tax deferred is beneficial is because we assume we will be in a lower tax bracket. This assumes that something like Universal Healthcare won't make the rates go way up and dissolve any possible lower tax rates.

Assuming my financial planner is right, we have to start drawing down the distribution (I think he said y the late 60's; I forget). In my case and in today dollars, we will get north of $5K a month with social security and as the laws are currently written, more or less "tax free".

When people start paying taxes on the tax deferred money that you have to draw, now your social security power is diminished. So what you get in your pocket is related to how you have your retirement structured. Therefore, a million or two in a Roth, KEOG or IRA isn't really $1 or $2M. Because you haven't paid your taxes on it yet AND it will dilute your social security income. That was my point.

[Ripper3785]

Originally Posted by MN-Born-n-Raised

I should not have said Roth.



Therefore, a million or two in a Roth, KEOG or IRA isn't really $1 or $2M. Because you haven't paid your taxes on it yet AND it will dilute your social security income. That was my point.

Did you just say it again? You must've meant 401K. Roth distributions have no impact on your social security benefits.

[MN-Born-n-Raised]

Originally Posted by Ripper3785

Did you just say it again? You must've meant 401K. Roth distributions have no impact on your social security benefits.

Guilty as charged.

[kent_moore]

There's a chance for me to leave the country due to visa issues. But I'll be back in a year or 2.

Should I sell or rent out the house I bought in early 2017? It is now appreciated by 15%.

[manchurainprez]

Originally Posted by kent_moore

There's a chance for me to leave the country due to visa issues. But I'll be back in a year or 2.

Should I sell or rent out the house I bought in early 2017? It is now appreciated by 15%.

I always have the opinion that if you can keep property and make rental income while growing equity that's the better bet.

I don't foresee a situation where you are at risk of losing tons of equity even if there is a recession in the next year or two and by all measures and reports I've seen the rental demand here isn't going anywhere.

Assuming you can still make money or even break even with a property manager while you are away, i think that would be what I would do.

[MN-Born-n-Raised]

Originally Posted by manchurainprez

I always have the opinion that if you can keep property and make rental income while growing equity that's the better bet.

I don't foresee a situation where you are at risk of losing tons of equity even if there is a recession in the next year or two and by all measures and reports I've seen the rental demand here isn't going anywhere.

Assuming you can still make money or even break even with a property manager while you are away, i think that would be what I would do.

I'd do the same. Selling and buying fees add up. If you like your current place, rent it out. You might even be able to convince the new temporary tenant to keep x amount of personal items like furniture in the home. That might save the hassle of moving things twice or storage fees.

[Tall Traveler]

Originally Posted by kent_moore

There's a chance for me to leave the country due to visa issues. But I'll be back in a year or 2.

Should I sell or rent out the house I bought in early 2017? It is now appreciated by 15%.

If you're planning to come back, just rent it out till then. If you're not coming back, sell it would be my recommendation.

I rent 3 houses in Phoenix area since 2011 through a property management company.

[kent_moore]

Thanks guys (manchura, MNborn&raised and TT)!

Building equity is my number 1 purpose. I like my house so much and I love staying there once my resident status becomes stable. While I'm away, I will be in our overseas office in Asia, hence, I won't be earning as much as I earn here. I will be hiring property management who can handle everything, I don't mind paying few extra $$ per month.

I still have time to actually work on my visa, my lawyer is working diligently on it so wish me luck guys! I'd rather not go anywhere.

[Burkmere]

Originally Posted by kent_moore

Thanks guys (manchura, MNborn&raised and TT)!

Building equity is my number 1 purpose. I like my house so much and I love staying there once my resident status becomes stable. While I'm away, I will be in our overseas office in Asia, hence, I won't be earning as much as I earn here. I will be hiring property management who can handle everything, I don't mind paying few extra $$ per month.

I still have time to actually work on my visa, my lawyer is working diligently on it so wish me luck guys! I'd rather not go anywhere.

I don't understand your comments about the visa concern, not that it related specifically to the topic of renting the house out, etc.

[Obadno]

Originally Posted by Burkmere

I don't understand your comments about the visa concern, not that it related specifically to the topic of renting the house out, etc.

He said he was having issues with his visa situation and he has to leave until it’s sorted