kirikara
Hi
My husband are considering relocating to San francisco.
We bought our first place in April 08 and totally renovated it. It costed us total about $231K.(and lots of love and work :)..)
We realized that it was great to own, but it was probably not the best choice for us, I think we fooled ourselves into thinking that we would be able to stay in the midwest longer than we wanted. We discussed it and both agreed that if we could make 10K out of it in this market and be able to move on to a better place for us, we would be fine selling. Then I took a look at the tax credit we already got (7.5K) and realized it was fairly close to what we wanted to make on this place anyway. I looked around in our neighborhood and because we have a rare/liked set up (2 bed 2 baths) there is not much competition and it looks like the market recovered quite a bit since earlier this year whith most units listed at 249K. My neighbor sold the same unit as mine but with a garage and less good exposure for 262K in less than 30 days back in march.
My question is the following. Most people would advise to wait...Thing is we know that within a year we would really want to move. We can wait til next summer and maybe have the market recover or try to sell now and maybe rent for the time being while we prepare our relocation.
I am trying to see what the tax credit would do to our selling price
Would I have to reimburse it if we sell within less than 2 years of purchase because of job relocation?
If I do have to reimburse because of time spent in the property but not if i sold at loss, Would it be better$ wise to sell now? here is my calculation
cost= 231K+ 14K(agent com. approx)=245K sale price
Let's say 245k is the tipping point for selling at gain.
I would have to sell at way more than 252K(245+ 7.5K= 252.5K..) to really make any money after repaying the credit, which seems very high considering the comps..
I am not confident that the chicago market will recover THAT much in a year time...??
What am I forgetting? do I need to include payment at closing on property taxes in my cost calculation? what kind of closing cost should I expect for selling?
I know most of you would say , stay put, wait it out. But we feel that at a certain point, if you have made a mistake, sometime it is good to move on and find a way to be happier. We don't want to make a totally stupid move and loose thousands of $, but we also want to consider that moving would make us happier in many different ways.
I also consider renting our place. but we probably would loose about $300 a month doing that, plus have to repay the credit right away. Which is probably not money well spent.
Any opinions or advice?
My husband are considering relocating to San francisco.
We bought our first place in April 08 and totally renovated it. It costed us total about $231K.(and lots of love and work :)..)
We realized that it was great to own, but it was probably not the best choice for us, I think we fooled ourselves into thinking that we would be able to stay in the midwest longer than we wanted. We discussed it and both agreed that if we could make 10K out of it in this market and be able to move on to a better place for us, we would be fine selling. Then I took a look at the tax credit we already got (7.5K) and realized it was fairly close to what we wanted to make on this place anyway. I looked around in our neighborhood and because we have a rare/liked set up (2 bed 2 baths) there is not much competition and it looks like the market recovered quite a bit since earlier this year whith most units listed at 249K. My neighbor sold the same unit as mine but with a garage and less good exposure for 262K in less than 30 days back in march.
My question is the following. Most people would advise to wait...Thing is we know that within a year we would really want to move. We can wait til next summer and maybe have the market recover or try to sell now and maybe rent for the time being while we prepare our relocation.
I am trying to see what the tax credit would do to our selling price
Would I have to reimburse it if we sell within less than 2 years of purchase because of job relocation?
If I do have to reimburse because of time spent in the property but not if i sold at loss, Would it be better$ wise to sell now? here is my calculation
cost= 231K+ 14K(agent com. approx)=245K sale price
Let's say 245k is the tipping point for selling at gain.
I would have to sell at way more than 252K(245+ 7.5K= 252.5K..) to really make any money after repaying the credit, which seems very high considering the comps..
I am not confident that the chicago market will recover THAT much in a year time...??
What am I forgetting? do I need to include payment at closing on property taxes in my cost calculation? what kind of closing cost should I expect for selling?
I know most of you would say , stay put, wait it out. But we feel that at a certain point, if you have made a mistake, sometime it is good to move on and find a way to be happier. We don't want to make a totally stupid move and loose thousands of $, but we also want to consider that moving would make us happier in many different ways.
I also consider renting our place. but we probably would loose about $300 a month doing that, plus have to repay the credit right away. Which is probably not money well spent.
Any opinions or advice?