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.