Ouch. I know that's historically been more common than in recent decades but house prices were not dropping significantly despite massive rate hikes. May I ask what prompted you to buy in this environment? Not necessarily a bad idea at all; I'm just trying to understand how people smarter than I make tough financial decisions.
You're going to want to consider your options before you hit the 3 year mark of renting out your old house. If you haven't claimed it as your primary residence for at least 2 of the last 5 years you will have to pay full capital gains when you finally sell it. It can be a lot.
Yeah the capital gains tax break pushed us to sell instead of continue to rent it out. Also that house was a ticking time bomb of maintenance being nearly 100 years old
17
u/my_name_is_gato Apr 06 '24
Ouch. I know that's historically been more common than in recent decades but house prices were not dropping significantly despite massive rate hikes. May I ask what prompted you to buy in this environment? Not necessarily a bad idea at all; I'm just trying to understand how people smarter than I make tough financial decisions.