fitznj wrote:
If you have a paid for home, you would be stupid to sell it. You could either rent it out
I would not call it stupid either; It's a personal decision, we rented
out our paid off house for 20 years. In reflection, we should have sold it 20 years ago.
Dealing with renters was an ok experience but our final rented was the
"renter from hell" - Was so glad we finally sold the house. Remember
you have to be "available" if something in the house needs attention,
tough when you're 2,000 miles away.
From a financial perspective - it was a wash; capital gains was a killer.
At the end income = expenses (just).
Ah yes, Capital Gains. You take all the risks, attempt to collect the rent, make the repairs, fix all the damages, pay the bills, pay the income taxes and when you sell, you find out your Uncle Sam was a silent partner and wants his cut. Of course most of gains are inflation and now with the net proceeds from selling that 2000 square foot home you have enough money to buy 1500 sq footer. But hey, you are rich, probably inherited your illegitimate wealth, have all kinds of tax shelters and should pay a steep price for being a slumlord and keeping the working man down. Come to think of it, Capital Gains taxes are waaaaay too low.
