One consideration -- if you paid $200k and can now get $500k for the house, that is a $300k profit. How soon will your divorce be finalized? If you sell the house before your divorce, you won't have to pay taxes on the profit ($500,000 exclusion for married couples.) If you sell after the divorce, your exclusion will only be $250,000, and so you will have to pay significant taxes on the $50k profit -- maybe $12k? If you wait for the market to rebound, your gains will again be reduced by the taxes -- unless you remarry.
If you have to relocate when your job ends, will you be forced to sell the house?
If you do decide to stay in the house, I'd give serious consideration to renting out a room or two.
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financial checklist:
[x] emergency fund fully funded [x] no cc debt [x] >10% to 401k
Last edited by zetta : 04-30-2008 at 03:38 PM.
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