Mixing
Is it advised to sell current self occupied home and buy the other new one to book the profit?
Clash Royale CLAN TAG#URR8PPP
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty margin-bottom:0;
up vote
1
down vote
favorite
I have a first (and only) and self occupied home. Mortgage is fully paid. Home is with four rooms.
Considering expenses I done on home so far including my share in mortgage, taxes so far, total interest paid etc. I will be in profit by 1000000.
Prices of property are not growing considerably anymore; growth rate is minimized.
- I do not need this much big home. Three rooms should be enough for me.
- By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
- New home will be self-occupied as well; it will not be rented.
I can clearly see the benefit, but I am not sure about other financial aspects involved here.
- New home will start new mortgage.
- Taxes will not be much different.
- As new home will be self occupied as well, there is no benefit other than the one gained while selling current home.
Is it advised to sell current self occupied home and buy the other new one to book the profit? If yes, what are the financial loop-holes to be considered while doing this?
I am not doing this for cash as asked here. I am doing this for booking the profit.
india real-estate selling home second-mortgage
asked 3 hours ago
Aastik
189112
add a comment |Â
up vote
1
down vote
favorite
I have a first (and only) and self occupied home. Mortgage is fully paid. Home is with four rooms.
Considering expenses I done on home so far including my share in mortgage, taxes so far, total interest paid etc. I will be in profit by 1000000.
Prices of property are not growing considerably anymore; growth rate is minimized.
- I do not need this much big home. Three rooms should be enough for me.
- By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
- New home will be self-occupied as well; it will not be rented.
I can clearly see the benefit, but I am not sure about other financial aspects involved here.
- New home will start new mortgage.
- Taxes will not be much different.
- As new home will be self occupied as well, there is no benefit other than the one gained while selling current home.
Is it advised to sell current self occupied home and buy the other new one to book the profit? If yes, what are the financial loop-holes to be considered while doing this?
I am not doing this for cash as asked here. I am doing this for booking the profit.
india real-estate selling home second-mortgage
asked 3 hours ago
Aastik
189112
Given that you apparently have another source of income to pay the mortgage on the second house, why not just take a (partial) mortgage on the first house and invest that?
– chepner
1 hour ago
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
I have a first (and only) and self occupied home. Mortgage is fully paid. Home is with four rooms.
Considering expenses I done on home so far including my share in mortgage, taxes so far, total interest paid etc. I will be in profit by 1000000.
Prices of property are not growing considerably anymore; growth rate is minimized.
- I do not need this much big home. Three rooms should be enough for me.
- By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
- New home will be self-occupied as well; it will not be rented.
I can clearly see the benefit, but I am not sure about other financial aspects involved here.
- New home will start new mortgage.
- Taxes will not be much different.
- As new home will be self occupied as well, there is no benefit other than the one gained while selling current home.
Is it advised to sell current self occupied home and buy the other new one to book the profit? If yes, what are the financial loop-holes to be considered while doing this?
I am not doing this for cash as asked here. I am doing this for booking the profit.
india real-estate selling home second-mortgage
asked 3 hours ago
Aastik
189112
I have a first (and only) and self occupied home. Mortgage is fully paid. Home is with four rooms.
Considering expenses I done on home so far including my share in mortgage, taxes so far, total interest paid etc. I will be in profit by 1000000.
Prices of property are not growing considerably anymore; growth rate is minimized.
- I do not need this much big home. Three rooms should be enough for me.
- By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
- New home will be self-occupied as well; it will not be rented.
I can clearly see the benefit, but I am not sure about other financial aspects involved here.
- New home will start new mortgage.
- Taxes will not be much different.
- As new home will be self occupied as well, there is no benefit other than the one gained while selling current home.
Is it advised to sell current self occupied home and buy the other new one to book the profit? If yes, what are the financial loop-holes to be considered while doing this?
I am not doing this for cash as asked here. I am doing this for booking the profit.
india real-estate selling home second-mortgage
india real-estate selling home second-mortgage
asked 3 hours ago
Aastik
189112
asked 3 hours ago
Aastik
189112
edited 3 hours ago
asked 3 hours ago
Aastik
189112
asked 3 hours ago
Aastik
189112
asked 3 hours ago
Aastik
189112
189112
Given that you apparently have another source of income to pay the mortgage on the second house, why not just take a (partial) mortgage on the first house and invest that?
– chepner
1 hour ago
add a comment |Â
Given that you apparently have another source of income to pay the mortgage on the second house, why not just take a (partial) mortgage on the first house and invest that?
– chepner
1 hour ago
Given that you apparently have another source of income to pay the mortgage on the second house, why not just take a (partial) mortgage on the first house and invest that?
– chepner
1 hour ago
Given that you apparently have another source of income to pay the mortgage on the second house, why not just take a (partial) mortgage on the first house and invest that?
– chepner
1 hour ago
add a comment |Â
3 Answers
3
active
oldest
votes
up vote
2
down vote
No one can answer this but yourself....
1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another.
2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more expensive now than when you bought your house.
3) The cost of moving is not insignificant. You may also end up wanting to replace furniture. Some stuff always breaks during a move.
4) There are some other costs associated with moving that you may not have considered.
5) You may not end up getting as much money for your current house as you think you should. It also may not sell quickly.
For me personally all that would be too much hassle for what it's worth. But you may see things differently.
answered 2 hours ago
xyious
708212
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
add a comment |Â
up vote
2
down vote
I do not need this much big home. Three rooms should be enough for me.
This is the only real tick mark in favor of selling your current home.
By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason you wouldn't roll that over to the next house which would be tax advantaged?
Unless you have another reason like being closer to family, shorter commute, or always wanting to live in the city/on the coast/etc, I'd stay put.
Moving always has one very big potential downside, neighbors for hell.
answered 2 hours ago
sevensevens
1644
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
add a comment |Â
up vote
1
down vote
If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.)
Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments.
So if you don't need a big house, such a shift makes sense. Especially when you don't think that you miss the space of your current house much.
You want the mortage only, because you can think that you can outperform your credit rates with your investment? You could do this usually too, when you get a new mortage for your current house.
answered 2 hours ago
chris
1625
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
add a comment |Â
3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
2
down vote
No one can answer this but yourself....
1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another.
2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more expensive now than when you bought your house.
3) The cost of moving is not insignificant. You may also end up wanting to replace furniture. Some stuff always breaks during a move.
4) There are some other costs associated with moving that you may not have considered.
5) You may not end up getting as much money for your current house as you think you should. It also may not sell quickly.
For me personally all that would be too much hassle for what it's worth. But you may see things differently.
answered 2 hours ago
xyious
708212
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
add a comment |Â
up vote
2
down vote
No one can answer this but yourself....
1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another.
2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more expensive now than when you bought your house.
3) The cost of moving is not insignificant. You may also end up wanting to replace furniture. Some stuff always breaks during a move.
4) There are some other costs associated with moving that you may not have considered.
5) You may not end up getting as much money for your current house as you think you should. It also may not sell quickly.
For me personally all that would be too much hassle for what it's worth. But you may see things differently.
answered 2 hours ago
xyious
708212
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
add a comment |Â
up vote
2
down vote
up vote
2
down vote
No one can answer this but yourself....
1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another.
2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more expensive now than when you bought your house.
3) The cost of moving is not insignificant. You may also end up wanting to replace furniture. Some stuff always breaks during a move.
4) There are some other costs associated with moving that you may not have considered.
5) You may not end up getting as much money for your current house as you think you should. It also may not sell quickly.
For me personally all that would be too much hassle for what it's worth. But you may see things differently.
answered 2 hours ago
xyious
708212
No one can answer this but yourself....
1) Have you considered closing cost (you'll pay the closing cost for at least 1 property if you sell yours and buy another.
2) Assuming you didn't spend a bunch of money on renovations it would seem that your profit comes mostly from the average home price rising. As such a 3 Bedroom house will also be far more expensive now than when you bought your house.
3) The cost of moving is not insignificant. You may also end up wanting to replace furniture. Some stuff always breaks during a move.
4) There are some other costs associated with moving that you may not have considered.
5) You may not end up getting as much money for your current house as you think you should. It also may not sell quickly.
For me personally all that would be too much hassle for what it's worth. But you may see things differently.
answered 2 hours ago
xyious
708212
answered 2 hours ago
xyious
708212
answered 2 hours ago
xyious
708212
answered 2 hours ago
xyious
708212
708212
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
add a comment |Â
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
Point 1 and 2 are the one I missed. Thanks for noting.
– Aastik
1 hour ago
add a comment |Â
up vote
2
down vote
I do not need this much big home. Three rooms should be enough for me.
This is the only real tick mark in favor of selling your current home.
By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason you wouldn't roll that over to the next house which would be tax advantaged?
Unless you have another reason like being closer to family, shorter commute, or always wanting to live in the city/on the coast/etc, I'd stay put.
Moving always has one very big potential downside, neighbors for hell.
answered 2 hours ago
sevensevens
1644
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
add a comment |Â
up vote
2
down vote
I do not need this much big home. Three rooms should be enough for me.
This is the only real tick mark in favor of selling your current home.
By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason you wouldn't roll that over to the next house which would be tax advantaged?
Unless you have another reason like being closer to family, shorter commute, or always wanting to live in the city/on the coast/etc, I'd stay put.
Moving always has one very big potential downside, neighbors for hell.
answered 2 hours ago
sevensevens
1644
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
add a comment |Â
up vote
2
down vote
up vote
2
down vote
I do not need this much big home. Three rooms should be enough for me.
This is the only real tick mark in favor of selling your current home.
By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason you wouldn't roll that over to the next house which would be tax advantaged?
Unless you have another reason like being closer to family, shorter commute, or always wanting to live in the city/on the coast/etc, I'd stay put.
Moving always has one very big potential downside, neighbors for hell.
answered 2 hours ago
sevensevens
1644
I do not need this much big home. Three rooms should be enough for me.
This is the only real tick mark in favor of selling your current home.
By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason you wouldn't roll that over to the next house which would be tax advantaged?
Unless you have another reason like being closer to family, shorter commute, or always wanting to live in the city/on the coast/etc, I'd stay put.
Moving always has one very big potential downside, neighbors for hell.
answered 2 hours ago
sevensevens
1644
answered 2 hours ago
sevensevens
1644
answered 2 hours ago
sevensevens
1644
answered 2 hours ago
sevensevens
1644
1644
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
add a comment |Â
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
Thanks, I will consider tax advantage and other tips as well.
– Aastik
1 hour ago
add a comment |Â
up vote
1
down vote
If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.)
Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments.
So if you don't need a big house, such a shift makes sense. Especially when you don't think that you miss the space of your current house much.
You want the mortage only, because you can think that you can outperform your credit rates with your investment? You could do this usually too, when you get a new mortage for your current house.
answered 2 hours ago
chris
1625
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
add a comment |Â
up vote
1
down vote
If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.)
Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments.
So if you don't need a big house, such a shift makes sense. Especially when you don't think that you miss the space of your current house much.
You want the mortage only, because you can think that you can outperform your credit rates with your investment? You could do this usually too, when you get a new mortage for your current house.
answered 2 hours ago
chris
1625
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
add a comment |Â
up vote
1
down vote
up vote
1
down vote
If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.)
Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments.
So if you don't need a big house, such a shift makes sense. Especially when you don't think that you miss the space of your current house much.
You want the mortage only, because you can think that you can outperform your credit rates with your investment? You could do this usually too, when you get a new mortage for your current house.
answered 2 hours ago
chris
1625
If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.)
Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments.
So if you don't need a big house, such a shift makes sense. Especially when you don't think that you miss the space of your current house much.
You want the mortage only, because you can think that you can outperform your credit rates with your investment? You could do this usually too, when you get a new mortage for your current house.
answered 2 hours ago
chris
1625
answered 2 hours ago
chris
1625
answered 2 hours ago
chris
1625
answered 2 hours ago
chris
1625
1625
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
add a comment |Â
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
Thanks; I will think about last paragraph.
– Aastik
1 hour ago
add a comment |Â
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f100473%2fis-it-advised-to-sell-current-self-occupied-home-and-buy-the-other-new-one-to-bo%23new-answer', 'question_page');
);
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Given that you apparently have another source of income to pay the mortgage on the second house, why not just take a (partial) mortgage on the first house and invest that?
– chepner
1 hour ago