we recently purchased a home and are considering our options on the home we have lived in for 13 years. The

Asked by Jenny, West Hempstead, NY Sat Oct 11, 2008

market is so volitile right now and we are worried we won't be able to sell; or sell for lower than we'd like. We are thinking of renting it out if we can't sell. Will we have to pay capital gains taxes?
Thanks for your advice,
Jenny

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Stephen Mahabir’s answer
Stephen Maha…, , Valley Stream, NY
Mon Dec 1, 2008
You really need to have a heart to heart with a Realtor as there may be too many differing opinions. Having owned your first home for so long you may still be in a good position to come out ahead, but depending on your financial situation you may have other options as well.
You can feel free to contact me at smahabir@hillcourtrealty.com.
0 votes
TERENCE CAVI…, Agent, MALVERNE, NY
Mon Oct 13, 2008
Jenny , I have had several people ask me this same question . You have already committed to half the equation , so your options are limited . But first , since you have owned the property for 13 years , I will assume that you have equity in it . When you sell it and buy another , you are transferring this equity to the new property , and hopefully you expect to stay in your new home for several years .So to save the equity that you have and NOT lose it in this down market My first recommendation is, that in this market , SELL your home as quickly as possible . Selling for less than you would like ? well yes ,but the longer you wait , the more the market seems to be moving down , and six months from now you will kick yourself for not taking advantage of these prices. You will then have cash in hand to buy or put into your new home . Since you already have bought , I suggest you save your equity by selling NOW and dont even consider renting .
0 votes
Keith Sorem, Agent, Glendale, CA
Sat Oct 11, 2008
Jenny
I have a couple of ideas that you might want to consider:

Any time you move the reason you are moving is to accomplish a greater objective. You need to focus on that objective, and prioritize everything else. This is a real estate website, but when you are thinking of moving, it is not the real estate aspect. It is the "why" that makes the difference.

At this point it you need to get good advice. Wise counsel. A Realtor should be able to help, but you might need more than that. If you don't have a Realtor that you think has that knowledge, I would be happy to provide you with a referral of an expert.

There are tax consequences, but more importantly there could be positive economic aspects. We were forced to rent a home when we could not sell. it was the best thing we ever did...and it was by accident.

Retaining a property as an investment could really be a positive part of your retirement portfolio, so don't let some commission-driven agent persuade you to make a big mistake...I speak from experience.

Talk with a CPA, a financial planner, and to me if I can help
0 votes
Gail Gladsto…, Agent, 11743, NY
Sat Oct 11, 2008
If you do not have to sell right now, you would do better with renting...the rental market is growing. However, if you have owned the house for 13 years, you will still be making money on the sale. You have choices...not a bad situation to be in.

There are no rental commissions in Long Island..tenant pays. If you wish to discuss further, please contact me offline at Gail@GailGladstone.com...I also do property management.
Web Reference:  http://GailGladstone.com
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