Real Estate Crash thread

[4matic]

Zero long term capital gain For couple with less than $78.5k income. If you can arrange your income for the rest of this year.

[Toadman]

Thanks. Always confused about that one, and they change it a lot.

You see how that enables the pyramid scheme that is Boomer real estate for the last fifty years.

I have definitively seen this phenomenon first hand in my town. Lots of very well off folks moving from the Seattle and Portland areas to retire. Not to mention the Cali contingent. They come from all parts of that state, and think nothing of dropping 7 figures for the latest and nicest house that was just completed by one of the many home builders cranking out million dollar homes around here.

Our RE agent sends us a monthly report on what's going on in the RE market. Currently 2 months inventory, and closing price is within 1% of asking. Home listings down, but the market remains very active. We shall see how long that situation lasts. Maybe through the summer construction months? Who knows.

[iceman]

I had a former commercial and residential interior designer relative of mine make this comment about such topics, "best not to go there." Meaning, don't over think the listing price for your house and what it sold for after the fact.

Really that's with any transaction. "I could have made more" is pretty poisonous if you made money. Just call it good and move on with your profit if you're fortunate enough to make one.

[schuss]

I think there's going to be a major shift to houses from apartments as people don't want to get stuck in 1k sqft for months again

[NewYorkDirtBag]

@ Benny: You're not wrong except i don't think the exemption has been around nearly that long. Maybe 20 years? Somebody who knows can correct me.

You're about right. Since May 1997

[liv2ski]

Do you have to turn around and buy another piece of real estate to avoid taxes?

If we are talking an owner occupied transaction they changed the rules back when Shrub was in office Anyways, back in the day as long as you rolled your equity into a more expensive place no Capital gains.

Now the gain is exempted for the first $250k if single and up to $500k if married. Anything above that is subject to Capital gain taxes which if you live in CA is a pretty big hit for combined Fed & State.

To avoid the gains, move out and rent it out for two years. Then do a 1031 tax free exchange into a couple of rentals Eventually, move into that nice rental in the mountains and still have income producing rentals in town to fund your Trustifarian life style. Winning Yugely

[liv2ski]

Zero long term capital gain For couple with less than $78.5k income. If you can arrange your income for the rest of this year.

HUH???? The gain counts in that $78.5k annual income right? Yup. So BFD.

[RootSkier]

To avoid the gains, move out and rent it out for two years. Then do a 1031 tax free exchange:

Not tax-free; tax-deferred.

[Benny Profane]

I think there's going to be a major shift to houses from apartments as people don't want to get stuck in 1k sqft for months again

Well, definitely in NYC. Interior space was the sacrifice you made in your life for the pleasure of walking out your door into Manhattan life, but, now that that's gone, a ton of people are going to opt out of that for grass and trees and much larger interiors. It'll swing back. Cities through history have endured worst.

[liv2ski]

Not tax-free; tax-deferred.

Pffft, you never sell, you always do tax deferred exchanges if you have big equity. Leave the properties to the kids and fuck the IRS The kids basis is reset when you pass at market value. They sell, no gain

[iceman]

My daughter and her boyfriend are paying rent on a NYC apartment and I can't get them out of my house. They don't want to go back. They loved it there. She just sent me a listing for a place in Vermont to ask what I thought.

[schuss]

Well, definitely in NYC. Interior space was the sacrifice you made in your life for the pleasure of walking out your door into Manhattan life, but, now that that's gone, a ton of people are going to opt out of that for grass and trees and much larger interiors. It'll swing back. Cities through history have endured worst.

Oh, definitely. It's just good timing as many successful millennials are starting families and with the job no longer as tethered to location, why not get more space for less money?

[Mazderati]

Amenities. Especially within walking distance.

[iceman]

Plus, and people look at me like I have two heads when I say this, but self-driving cars are gonna be a game-changer for suburbia. And they are coming soon. Going downtown for some drinks and dinner now is hard if you live well out of town and like to party. Trust me on that one. It's a downer. You'd just as soon not go. But if you like nightlife, not going because you're worried about the drive home sucks. That has favored urbanism for sure in my world.

But if you could just sit in some sort of a vehicle (a mobile lounge!) and chill and do your thing and get delivered to a restaurant or a play or whatever for cheap, that's big. Same if you have to commute. Instead of spending 2 hours a day when all you're doing is driving, you have 2 hours to sit and do work with no interruptions. Or work on the way in and drink or get high and watch video and listen to tunes or pray and call Mom or whatever on the way home. That's a pretty big difference. Definitely would have improved my suburban sojourn.

[Benny Profane]

Nope.

Think of how you'd feel about that the first time you get in one of those things after somebody puked or worse. And, it will happen. Especially on Saturday night.

[Danno]

Nope.

Think of how you'd feel about that the first time you get in one of those things after somebody puked or worse. And, it will happen. Especially on Saturday night.

you're assuming public driverless cars. But there may be high levels of private ownership. Take your car downtown, have it park itself, call it back when you're ready to leave. Only puke in it would be your own.

I sound like skaredshtless now.

[iceman]

Yeah I feel like private is probably going to be the main thing at least at first.

[Ted Striker]

Only puke in it would be your own.

You can't really dust for vomit

[iceman]

Nice pull. "Globules".

[Benny Profane]

you're assuming public driverless cars. But there may be high levels of private ownership. Take your car downtown, have it park itself, call it back when you're ready to leave. Only puke in it would be your own.

I sound like skaredshtless now.

Always good to be reminded of how the TGR demographic consider themselves in this world. Aspiring to private robot cars. Explain that business model to me. Explain how it will work. I have heard much about it, some told me it would be happening today. Why not just go all the way to flying robot cars, while we wait for Scotty to finally perfect the transporter?

[Danno]

Always good to be reminded of how the TGR demographic consider themselves in this world. Aspiring to private robot cars. Explain that business model to me. Explain how it will work. I have heard much about it, some told me it would be happening today. Why not just go all the way to flying robot cars, while we wait for Scotty to finally perfect the transporter?

so what, you view autonomous cars as potentially viable (but not for nights on the town) but the notion of private autonomous cars suddenly makes the whole thing an absurdity?

I don't aspire to anything, I just think that given our car culture, if autonomous cars exist at all, the dominant theme -- at least initially -- will be private ownership. Over time, I think that may change, but maybe not.

[ThreeRidges]

But if you could just sit in some sort of a vehicle (a mobile lounge!) and chill and do your thing and get delivered to a restaurant or a play or whatever for cheap, that's big. Same if you have to commute. Instead of spending 2 hours a day when all you're doing is driving, you have 2 hours to sit and do work with no interruptions. Or work on the way in and drink or get high and watch video and listen to tunes or pray and call Mom or whatever on the way home. That's a pretty big difference. Definitely would have improved my suburban sojourn.

We had that when I was growing up in Connecticut in the 1960s. It was called the Penn Central bar car.



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[skaredshtles]

<snip>
I sound like skaredshtless now.

With age comes wisdom...

[Benny Profane]

so what, you view autonomous cars as potentially viable (but not for nights on the town) but the notion of private autonomous cars suddenly makes the whole thing an absurdity?

I don't aspire to anything, I just think that given our car culture, if autonomous cars exist at all, the dominant theme -- at least initially -- will be private ownership. Over time, I think that may change, but maybe not.

I never said autonomous cars are viable. Well, they are, if the country decides to spend trillions on uniquely dedicated roadways. But that ain't happening. Hey, why not just improve mass transit?

[iceman]

Take a breath Benny. This will go the simplest way in the early days. Software and sensors are the action items. They'll get done.