Move Up Buyer Planning
Tip #1 – Decide what you to do with your existing home. 

Most often, our clients answer one of two ways:

 

  • Sell for top dollar, or

  • Keep it as a rental.

 

Both options deserve advance planning.

 

You should sell your existing home if….

 

  • You can only qualify for one mortgage (Please contact Abundance to verify. Don’t miss out with a false assumption.)

  • Your existing home is not a good candidate for your retirement portfolio;

  • You prefer to keep your retirement assets more liquid than real estate; or

  • You will lose sleep if you occasionally receive no rental income from your rental property.

 

You may want to keep your existing home as a rental if….

 

  • You want to diversify your retirement portfolio;

  • You see the potential for more appreciation; or

  • You like the idea of receiving some passive, residual income while you sleep.

 

Here are some tax implications to consider:

 

  • If you have lived in this home for 2 out of the last 5 years, then you may qualify to exclude up to $250,000 of your capital gains from your income, or up to $500,000 of that gain if you filed a joint return with your spouse.  See IRS Topic No. 701 for the Sale of Your Home.
     

  • You may be able to write off some expenses you incur to get the home ready for rental; enjoy real estate depreciation for years ahead; and enjoy tax deferred 1031 exchange as you optimize your real estate portfolio for your retirement.  

 

Yes, we are happy to introduce to you our trusted CPAs and tax attorneys.
 

Real estate is a big, long-term, and often good commitment.   If you not sure about your financial goals, or if you have other priorities and concerns, we Abundance are happy to brainstorm with you. 

 

If your decision is to sell your existing home, then take steps to sell it for top dollar.

 

  1. Interview 2 or 3 real estate agents in your area to get their valuation and recommendations.  Have you heard Zillow’s iBuyer disaster in Fall 2021?   Don’t trust Zillow or Redfin valuations.  Call Abundance for our trusted real estate agent referral for your neighborhood. ​

  2. You are more likely to get top dollar for your existing home if you sell it vacant, updated, and staged.   Find out how Abundance Bridge Loan uses the equity of your existing home to help you buy and move first, before you sell, sometimes without any down payment.