Posted by David on July 19, 2001 at 19:06:13:
a. pay little or no taxes on a personal residence, up to $500,000 profit tax free per couple.
b. you repeat the process not only with your personal residence but say with 5 or 10 other investment properties.
c. you buy at some price/terms less than market so that you have a profit going in on day one.
making money on property value increase - Posted by Ghia
Posted by Ghia on July 19, 2001 at 17:49:02:
OK, I’m new at this whole property owning thing, and I’m completely confused!
We bought a property a couple of years ago for $165.000. So far we have paid off $37.000. The property has already gone up in market value to about $200.000. Now here is my question:
If we decide to sell in 5-10 years, yes we will make profit due to the property value increase. However, if we sell our property, we also need to buy another place to live in. Therefor, if our property has increased, any other potential future home we purchase will have the same increase as well, unless we move into a smaller place.
Therefor, my question is… Where is all the profit people talk about??? From my calculations, it would appear we would just break-even if we sold and re-purchased.
Is there something I’m just not getting?
HELP!
GHia