is it really crazy to sell a house after less than 1 year??

[Semidevil]

so I recently bought a house as I am doing great at my current location, and had plans to stay long term there.

my company is now starting a program where they will train you to be a supervisor and ofcourse, a mobile applicant has a higher chance of being chosen into the program.

seeing that I bought my house in june of 06., and If I am forced to relocate, I will need to sell my house.

first question. I feel a bit uneasy about selling such a big investment after less then one year. is it common? is it bad idea?

 

[Aimster]

taxes will own you

I believe 30% if it is under 2 years, but maybe the rules changed?

 

[her209]

Isn't there a tax break if you put the money towards another property?

 

[Sluggo]

Originally posted by: Aimster
taxes will own you

I believe 30% if it is under 2 years, but maybe the rules changed?

Its only a tax on the capital gains. Unless his house has skyrocketed in value in the past 7 months, I doubt he will be "owned" by the taxes.

 

[IronWing]

It depends. Great answer, huh? But true. You need to think about what the opportunities are with the program and decide if the potential loss from selling, if any, is worth it. Also, consider your mortgage interest rate vs current rates to determine the true cost of moving.

Also, outside the financial considerations, which type of job will make you happier? Supervising can be fun and it can be a drag; it isn't for everyone.

 

[QED]

Typically selling a house after only one year is a bad idea because of the (relatively) large up-front costs in both buying and selling a home.

Your typical home purchase will have closing costs in the low thousands. In your typical home sale, you pay 6 to 7% right off the top of the selling price in realtor commisions. So an a $200,000 home, you are looking at around a total loss of $15,000. Divide that by 12, add it to your monthly mortgage payment, and you'll see how much it costed you to basically rent your home for the year you lived there.

This doesn't even factor in the tax implications which I won't go into.

Suffice it to say that unless you paid little or no closing costs when you bought the home, and plan on selling it yourself , or your home appreciated considerably in value... you will lose a decent chunk of change selling it in the first year.

 

[Whoozyerdaddy]

Originally posted by: Aimster
taxes will own you

I believe 30% if it is under 2 years, but maybe the rules changed?

I had to do this a few years ago. I believe there is a CG exemption if you have to move for work.

 

[IHateMyJob2004]

Umm, does your company offer relocation? If so, they will buy your house. Tell them you need to atleast break even to enter hte program. You boss is there to answer these questions, so get to it.

 

[PAB]

Originally posted by: Semidevil
so I recently bought a house as I am doing great at my current location, and had plans to stay long term there.

my company is now starting a program where they will train you to be a supervisor and ofcourse, a mobile applicant has a higher chance of being chosen into the program.

seeing that I bought my house in june of 06., and If I am forced to relocate, I will need to sell my house.

first question. I feel a bit uneasy about selling such a big investment after less then one year. is it common? is it bad idea?

Offering anything for sale in this market is a bad idea.