Did you ever think about selling your house and moving every two years?

[34saving]

Re: Did you ever think about selling your house and moving every two years?

Definitely have thought about it, but I'm not sure the financial gains would be worth the nuisance! I do think the "model" works better if you buy fixer-uppers or build.

[cheapbastard]

Re: Did you ever think about selling your house and moving every two years?

I don't quite understand how you would come out ahead selling your house every two years and keeping the profit. You have to get a new house to live in after you have sold yours. Sure your house has gone up in value, but so have all of the other houses around you. I don't see how you come out ahead.
If you buy an investment property and have renters pay the mortgage, then you would be making real money. I still would not sell it, I would use the equity that builds in the one property to buy another property in two or three years. Then in a few more years buy another and then another and another. As a wealthy real estate investor told me once, "Never Sell".

[katwoman]

Re: Did you ever think about selling your house and moving every two years?

Think of it this way: you buy each house brand spanking new. No repairs or other expenses except the usual --- gas, elec, phone. Even the property taxes are not assessed fully 'cause it's so new. Then you sell after 2 years and roll that money (250k of it is tax free) into the next new home. Same process.

At the end of 10 years, you're a millionaire.

Come to think of it --- my bro knows a woman that has been doing a variation of this -- she buys condos in downtown Chicago that have not been upgraded in ages. Pays 600k. Then her crew comes in and she redoes the thing. Marble, granite, glass doors, inlaid woods. Luxury! My bro even took a tour of her condo. She flips them (after living in each for 2 years) for 1M.

[cercis]

Re: Did you ever think about selling your house and moving every two years?

I hate to move and apparently I'm a horrible sales person, because I don't make much when I sell a house. And the stress likes to kill me.

[Ima saver]

Re: Did you ever think about selling your house and moving every two years?

I had rentals and lost money on all of them. I would never do that again. I would not sell and buy a house. I could double my money on this house and get to keep the profits, I think up to $500,000 as a couple.
I would pay my husband to build us another house. He would be earning an income plus he can do all the plumbing and electrical much cheaper. Now I realize I would not make as much on the 2nd house. This house has had 10 years to appreciate and it really has. You have to be in a hot area, and we are.
I agree cercis, It does not pay to do this if you don't make much when selling a house. I sold my last house on the river, for $110,000 10 years ago. Now a house like that on the river is going for close to $400,000. I had over $100,000 in it.

[PrincessPerky]

Re: Did you ever think about selling your house and moving every two years?

On the junk you mentioned, pretend you are moving now, anything not worth packng again in 2 years, ditch. Don't worry if it is only a little the first try, just try again in a month or two, and again. eventually moving will be easy, and you can be a millionare .

[Ima saver]

Re: Did you ever think about selling your house and moving every two years?

That is a good idea, that is why I am planning on having a big garage sale this spring and I am going to put lots of stuff in a free pile. I did that last time I moved and one lady took everything.

[nanamom]

Re: Did you ever think about selling your house and moving every two years?

I have a relative who bought a house and intended to fix it up and move to another and fix it up and etc etc. His plan was for 3 - 4 years per house. He's still in the first one 12 years later. I bought a fixer upper and sold it for a small profit and bought another and sold it for slightly over cost. Wish I could afford to do it again.

[Happily]

Re: Did you ever think about selling your house and moving every two years?

The property tax nightmare in CA is that property values go up so quickly that your property tax bill can DOUBLE every time you sell one house to buy another. For example, if you bought a $400,000 house 2 years ago, you'd have to pay around $750,000 now for a comparable one. There's no profit, and your property taxes have nearly doubled (and you have to pay them EVERY year--That's over 1% of the purchase price EVERY year). Brand new houses have so many hidden costs (like landscaping, flooring upgrades, paint, HOA, mello roos). It freaks me out just to think of it.

[Ima saver]

Re: Did you ever think about selling your house and moving every two years?

Wow, If I lived in California, I would have to sell and move some where else.

[flash]

Re: Did you ever think about selling your house and moving every two years?

Ima, I think if you husband is the builder, you are getting your house "at cost", so there is a profit to be made no matter what. Think about the person who buys your house, what they paid, do you think they could flip it in two years for that kind of profit?

California has prop 13, which can be argued as good and bad either way, but it really impacts taxes for buying and selling.

In the late 80s, Cal. prices were sky-rocketing, and people flipped pretty regularly. I remember senior citizens parked in RVs for days to wait in line for a chance at purchasing a new home/lot. But in the 90's, with the downsizing of defense and major companies moving to more cost-effective areas, like Arizona, the prices fell hard and quite a few people could not afford to sell because they would lose a fortune.

I have a friend in California, and one out here, that flips houses for a living, but he REALLY knows the areas, historic requirements, and all the ins and outs.

I'd love to do fixer uppers and flip, but DH is very cautious about it.

[contrary1]

Re: Did you ever think about selling your house and moving every two years?

I just moved in October.........and it is a SURE way to clear out stuff. I thought I had given away all the uncessary stuff prior to the move..(freecycle is great for that), but no...........here at the new place, I've been able to find a ton of stuff there is no need to unpack.
I kept the other house as a rental, so I didn't even move everything, there are a couple outbuildings still cluttered with stuff. And, this house is half the size........so less space.
Ideally, I will end up with an uncluttered house & life here....hoping by summer. I'm still keeping our local freecycle list active!!!

[Ima saver]

Re: Did you ever think about selling your house and moving every two years?

Flash, no I don't think that the person buying my house could flip it and make a big profit like I think we can. I don't think we could make that big a profit every time either. But it helps that my husband is a builder and I can pay him to build it.
But even if we could make a $20,000 profit and my husband is making a year's salary, it might still be worth it.

[frugalfarmwife]

Re: Did you ever think about selling your house and moving every two years?

I'll never move again! This last move was a killer and almost a deal breaker in the marriage, lol, but I'm married to a collector. It took me a few weeks to move the household bit by bit by myself a truckload at a time, one day of the big furniture and washer/dryer/stove/freezers with two family members.

Now the hubby it took him a year to move all the farm implements, tractors and shops.

Oh, and a friend and I moved all the livestock in one day, it was a three mile move and we took 4 horses at a time, 11 trips

Those that can flip houses and make money thats wonderful, but it's not something we could ever do!

kj

[Ima saver]

Re: Did you ever think about selling your house and moving every two years?

Well if I lived on a farm I don't think I would move either. I love my house, so I would only move if I could make good money. Plus my husband likes having a new house, ever thing clean and new!!