9
Your options are the same as if prices had not changed. You bought the home, you own it now regardless of what the surrounding market has done.
Those options are:
Sell the home, likely at a loss and after a long listing period
Live in the home. It's change in value won't change that arrangement much.
Rent the home, per your numbers at a slight loss
Leave it ...
8
As noted in the comments above by Dilip Sarwate - you'll have to depreciate your real estate.
More specifically, you can review a couple of IRS publications such as Publication 535 (2019), Business Expenses which goes into some detail about what is considered a deductible expense.
The shorter answer is in Deducting Business Expenses where the text explains ...
8
This is how it works in my experience regarding getting a mortgage:
Owner occupied. If you put less than 20% down you have to get PMI.
Rental. You are required to put 20% down. Not all lenders will make loans for rental property.
Now some people start with a owner occupied and change to renting the property years later. They do this when they have to move ...
5
The primary reason is that most sellers are also buying another house at the same time, so they tend to have more rigid timelines that make your suggestion impractical.
Beyond that, if you go too high on your initial price a lot of people won't look at your property. Most people have a fairly strict price range they are looking for so anything higher will ...
5
Your question seems to posit that the housing is provided as a benefit and the employee is not charged rent. The value of the housing is likely taxable to the employee:
Unless an exception applies, the full value of the housing is treated as additional taxable compensation to the employee. Full or partial exceptions apply if the housing is:
Provided for ...
4
In the Canadian system of buying houses, your offer is binding once accepted. You've bought the house. It's a few months until keys are exchanged and you move in, but the deal is done. You don't "protect your earnest money" -- it's not really yours any more. You've made a partial payment (often called a downpayment) towards the deal that is done ...
3
There are several complex details and activity sequences that you need to know about, and most people buy real estate rather rarely, so they might not know them, or not remember them.
In addition, compared to other typical transactions, every error can bear significant losses; buying a rotted or moldy house can easily set you back five or ten annual salaries....
3
Whoever told you that is mistaken. Life insurance generally only is paid out when the insured person dies. Mortgage insurance covers the mortgage. If you die or otherwise become unable or unwilling to continue to pay your mortgage payments it will come in effect.
No matter what, they are not interchangeable if the following statement can be understood to ...
3
The traditional way agents get paid is that when the seller lists a house with an agent, the seller commits to a 6% commission. The sellers agent splits that with the buyer’s agent 50/50, or 3% each. (Now on some markets it’s less than 6% because home prices are unusually high. As an FSBO it is your job to know if that’s so.)
Anyway, if you list on an MLS, ...
answered Jul 29 at 19:47
Harper - Reinstate Monica
42.1k8 gold badges64 silver badges138 bronze badges
2
I want to know how much of appreciation I am expecting in the next 5 years.
It is utterly impossible to know this.
It is sheer luck.
If you mean in previous years ...
How can we know the capital appreciation of property in an area?
These days it is incredibly easy to find this information. For example in the USA, zillow.com or a dozen competitors.
Use a ...
2
It may be worthwhile to study what happened home owners that bought prior to 2006. The market crashed later that year and those that had ARMs had a lot of difficulty holding onto their homes. Some also had difficulty holding on because of lost income or failed attempts at trying to take advantaged of government programs that reduced mortgage balances. ...
2
I agree. In many cases, a realtor doesn't add much other than to the price. As a counter point, I'd offer that realtors put in a lot of time with buyers who don't buy or end up using another realtor. Be that as it may, buying or selling a home isn't rocket science and you don't need to become a realtor or use a realtor to do so. This is applicable to the ...
1
There are several reasons, and I'm perhaps missing some. First, and probably most important, is that it IS a convention. The system was set up, and fairly well perfected, long before there were such things as FB* marketplace, or Zillow, eBay, Craigslist, &c. If it ain't broke, why fix it?
Now there ARE plenty of "For Sale By Owner" and "...
1
I am not sure how much it helps them.
If they are paying cash for the house (w/o a mortgage) they are paying themselves. That fee will be part of their income. Though if they owe taxes on the profits when they sell, this added expense will reduce the tax they have to pay.
If they have a mortgage then they are financing their fee. They will pay interest on ...
Only top voted, non community-wiki answers of a minimum length are eligible
