2006-11-27 13:36:59 · 3 answers · asked by barakuda 1 in Business & Finance ➔ Renting & Real Estate
It could be, but it depends on the market where you are and how much you pay for it initially. I bought a house 8 years ago for $230,000 and sold it for $430,000 7 years later. The market was really a seller's market (about 18 months ago) and I had done a few upgrades (new windows, added a deck, new carpeting, etc.).
2006-11-27 13:45:28 · answer #1 · answered by luna 5 · 0⤊ 0⤋
It all depends on the purchase price. If you buy a house 20-30% below market and it needs updating; then you can renovate over 2 years and sell for a tax free profit up to 500k if you are married and 250k if you are single. If you grossly overpay and with todays market you can loose or at best break even. I personally feel you will always make out if you purchase below market and bring it up to market standards without over spending or over improving.
2006-11-28 01:51:35 · answer #2 · answered by tianaramal 4 · 0⤊ 0⤋
Sure, if you think it will appreciate enough in that time. If you use it as your principle place of residence for 2 out of 5 years, you also won't pay capital gains on the profit.
2006-11-27 21:58:32 · answer #3 · answered by Papa John 6 · 0⤊ 0⤋