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What to do with profit from sale of house
Posted on 6/4/21 at 9:32 pm
Posted on 6/4/21 at 9:32 pm
Planning on selling current house. 600k Looking like 300k profit.
My first thought is to dump it all into the new house 680k
However the mortgage guy brought up the idea of putting 150k down and investing the rest.
We don't need the 300k to get approved for new mortgage
My first thought is to dump it all into the new house 680k
However the mortgage guy brought up the idea of putting 150k down and investing the rest.
We don't need the 300k to get approved for new mortgage
9
Posted on 6/4/21 at 10:05 pm to LordSnow
You can really make some cash with that large of an amount. Can really move percentage wise.
Dump it all in Tellurian and retire in 5 years.
Your welcome.
Dump it all in Tellurian and retire in 5 years.
Your welcome.
Posted on 6/4/21 at 10:16 pm to LordSnow
buy some bitcoins
This post was edited on 6/4/21 at 10:16 pm
Posted on 6/5/21 at 12:41 am to LordSnow
Depends on your situation; risk tolerance, retirement timelone, other investments etc....
Generally speaking he is right you are likely to get better return over long run investing vs locking it in as equity just to save a paltry ~3%. I wouldnt buy single stocks. I'd put it all in an index fund. You can also think of the mortgage as a hedge against inflation. It will remain a fixed expense.
Max tax advantaged accounts first.
Generally speaking he is right you are likely to get better return over long run investing vs locking it in as equity just to save a paltry ~3%. I wouldnt buy single stocks. I'd put it all in an index fund. You can also think of the mortgage as a hedge against inflation. It will remain a fixed expense.
Max tax advantaged accounts first.
Posted on 6/5/21 at 1:04 am to LordSnow
Why not put 5% down on the next home and keep 425k
Posted on 6/5/21 at 10:25 am to LordSnow
Obligatory hookers & blow
Posted on 6/5/21 at 10:38 am to LordSnow
quote:
However the mortgage guy brought up the idea of putting 150k down and investing the rest.
Why wouldn’t he? You’re telling him you might get a much smaller mortgage, which means he’d be losing money. He’s not entirely wrong, but there’s a lot more factors to it
It sounds like you’d have the capability to do a 15 yr mortgage regardless of how much you put down since you have a ton of cash available. I’d do a 15 yr mortgage, 20% down, and invest the rest. Mortgage people don’t like 15 years bc they make a lot less money on them - you’ll pay a lot less in interest. But you still get the exposure of investing a lot of that money. I think it’s a good best of both worlds way to manage this
This post was edited on 6/5/21 at 10:39 am
Posted on 6/5/21 at 6:05 pm to LordSnow
quote:It's a discussion that comes up frequently here.
However the mortgage guy brought up the idea of putting 150k down and investing the rest.
We don't need the 300k to get approved for new mortgage
The mortgage is tax deductible. Calculate the cost of the money (monthly payment after deduction), then juxtapose the cost against what you'd conservatively expect to make if you invested it.
If you are not confident in market ROI (or probability of inflation), take the advise Dave Ramsey offers and avoid debt.
It's an individual choice. My choice, assuming good rates, would probably be to take the loan, and invest the cash.
Posted on 6/5/21 at 6:08 pm to NC_Tigah
quote:
The mortgage is tax deductible.
Standard deductions are pretty high right now. Would depend on what else they can itemize to see how relevant this would be.
Posted on 6/5/21 at 6:28 pm to LordSnow
What kinda of tax hit would you take on a 300K profit? What are you walking away with after taxes?
Posted on 6/5/21 at 6:32 pm to FLObserver
First 250k of profit on a sale of your primary home is not taxable. So they just need to be concerned with the 50k portion.
Posted on 6/5/21 at 7:22 pm to FLObserver
quote:He is purchasing a more expensive home.
What kinda of tax hit would you take on a 300K profit? What are you walking away with after taxes?
Posted on 6/5/21 at 8:07 pm to LordSnow
How are you defining profit?
Posted on 6/5/21 at 8:15 pm to Powerman
It's $500k tax exemption if owned more than 2 years, he said "we".
Posted on 6/5/21 at 8:19 pm to tirebiter
Tax deduction on interest/taxes, if any, is likely marginal.
Posted on 6/5/21 at 9:43 pm to Tigerpaw123
quote:
How are you defining profit?
Paid 300k for house. Sell for over 600k.
300k of profit.
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