The Housing Market (2021)

[Neal]

The other factor to weigh in is storage costs. I could not and would not sell everything. My S&B serves as my storage unit as well as my home. I know I'd have to add up total monthly costs, factor in real-estate as an investment but it has NOT been an investment I don't believe since I bought it at the peak of the bubble in 2005. Maybe we are not entering into a new bubble? But if I sold I'd have to store what I would expect to cost at least $500/mo in storage costs. I've also thought of buying a condo in St. Petersburg FL area. I do like the west coast of FL but there are some negatives I have to weigh as well. And again, I'm sure home prices are not on a decline there, so if you sell now you're going to buy right into the madness on the other side.

 

[Retired]

Im in Middle Georgia. Not my first, second or third choice.

We had a house built 3.5 years ago for 162k, no mortgage. All brick, laminate flooring, granite counter tops, high ceilings. 1325sf, all we wanted, small lot, low maintenance.

Taxes and insurance are low, low crime rate, low cost of living.

At age 62 Georgia doesnt tax the first 35k in retirement income, it goes up to 65k at age 65.

Everything we need is near the house. I use about a tank to a tank and a half of gas in the F150 every month.

Atlanta is an hour away. Orlando is 6 hours away, Savannah is 3 hours. I like Florida but there is just to many people there, to much traffic and if you are in S. Florida, pack a days provisions, it takes forever to leave. Forever and a day if it is a hurricane evac.

Wife will work another 4-6 years or until she has had enough. She has M-J-J off so we can travel every summer and chase the cooler weather.

Middle Georgia is a good compromise.

 

[murphysranch]

Every state is soooo different! In so many ways. Climate, taxes (personal, sales, real estate), housing, food, gasoline, outdoor activities, etc.

Washington state has no income tax, which is benefiting my Software eng DD and her hubs. It wouldn't help me as I'm low income at the moment.

Oregon is in a housing crunch, which was exacerbated by the many fires last fall that destroyed entire towns. Rebuilding is very very costly now due to lumber and supply prices. The Cement fiber siding (hardi board) used to be about $25 or so a sheet and now is $42 a sheet. (I just went to Lowes and HD online and its over $50 a sheet!!). Appliances are on a 5 month back order and people are paying anything and more, for them. Roofing materials are in short supply. Not a good time for builders as someone explained above, if you've presold your new spec.

 

[Jim]

Taking advantage of the housing market is great but if you're looking to take the cash and build a home, then you might want to reconsider, at least for awhile. Lumber has hit an all time high, at least around here it has. A piece of 3/4' plywood is pennies shy of $100.00, and 2x4's have hit as high as $13.00. It's unbelievable!

We were going to complement the RV park by building 3-4 cabins on the mountain, but have decided to take a watch-n-see approach for a bit. Not sure what's driving this crazy lumber market, but it's scary to think what building a house would cost at those prices.

 

[Retired]

Canadian imports are down, some mills went idle last year and demand is very high.

Sometime later this year it should return to normal.

If you can sell and avoid capital gains, now is a good time to do so. A friend just sold land in TN and was hit with a 28k capital gains tax bill from the feds. Ouch.

 

[murphysranch]

^^ it depends upon the property whether you're hit with long term or short term capital gains (land vs home vs occupied for two years or more...). Neal will be paying long term gains since he's had it soooo long. (if he even sells).

 

[Retired]

No capitol gains on your primary home. Has Neal been on vacation?

 

[Neal]

Reducing or Avoiding Capital Gains Tax on Home Sales

Capital gains taxes on real estate and property can be reduced or not assessed when you sell your home, up to certain tax limits, if you meet the requirements.

www.investopedia.com

Topic no. 701, Sale of your home | Internal Revenue Service

Topic No. 701 Sale of Your Home

www.irs.gov

Capital Gains Tax on Home Sales and Real Estate - NerdWallet

If you sell a house you didn’t live in for at least two years or that isn't your primary residence, capital gains tax on real estate may apply.

www.nerdwallet.com

 

[VTPete]

You are fortunate to have good options. This is an emotional decision in the end, if you're not so attached to your current house, and you enjoy spending a considerable % of time in your coach, then maybe it's a good time to cut it loose and do something fun elsewhere. It's not really efficient to keep a S&B if you're on the road 50%+ of the time anyway. Maybe purchase a new property with more flexibility, where you can rent the main house to cover the cost and has space to build a bitchin' RV garage with apartment for you to stay in. (RV Garage Plans & Motor Home Garages – The Garage Plan Shop).

Unless your pining for a new coach for emotional reasons, (like you've always wanted an Essex or London Aire or something) your current coach is probably your best bet.

 

[VTPete]

Reducing or Avoiding Capital Gains Tax on Home Sales

Capital gains taxes on real estate and property can be reduced or not assessed when you sell your home, up to certain tax limits, if you meet the requirements.

www.investopedia.com

Topic no. 701, Sale of your home | Internal Revenue Service

Topic No. 701 Sale of Your Home

www.irs.gov

Capital Gains Tax on Home Sales and Real Estate - NerdWallet

If you sell a house you didn’t live in for at least two years or that isn't your primary residence, capital gains tax on real estate may apply.

www.nerdwallet.com

There's a few strategies you can employ to manage your tax liability if you don't buy another residence in the first year.
UPREIT, 721 exchange, or 1031 into a REIT, a good tax guy can help.

 

[murphysranch]

I have rented out parts of my home to travelling medical professionals. They typically have three month stays, but are sometimes cut short and/or extended. It was great for me.

 

[FL-JOE]

So Neal, it looks like what I said originally about not paying capital gains on profits of $250,000 or less when selling your home (single) is still the case. I guess if you are going to show a profit of well over that then the argument for selling could go either way.

As far as storage. This has long been a tough question for all full time RVers. We pay around $130 a month for 10x20 climate controlled unit. There was family stuff and just a couple pieces of furniture that we couldn't part with. Now you have to use your head when you rent a 10x20 to assure maximum storage use. I put 5' heavy duty plastic stackable shelving down each side, then across the top I placed a 2x6x10, spacing them about 3' apart, creating a loft area for lighter stuff to go. Believe me when I tell you that every square inch of our rented space is taken!

But so far we have dished out over $5,400 for that storage. Probably by the time we come off the road full time we will have paid well over $12,000 to $15,000 in storage for items that are valued at about $5,000 total. But then again it is a drop in the bucket compared to maintaining a house that we would rarely if ever use.

As far as relocating to another state be very careful. My BIL retired from a company in Florida several years ago and they bought a home outside of Atlanta. He didn't have a clue how it would effect his personal income taxes. They are trying to get their money back out of that Georgia home and get back to Florida now. Housing prices and bubbles can go up and down, but generally a states tax liability never really changes. Be cautious my friend.

 

[Neal]

Great tips and advice which is why I posted my internal dilemma for others to help me sort out. It is good to know on the Capital Gains. However, with the RV which is a second home, are people paying CG's on it if they profit on the sale? (I'm accounting/tax illiterate by choice).

I would likely move to a place that would benefit buying my next coach such as FL. I'm also eying the MT/ID/WY area as I'm in the process of buying a backcountry airplane which is why I went to Yakima and why I'm headed back there now. With that said, FL is probably one of the least desirable to me. to be doing that kind of flying. High humidity, no terrain, poor visibility, bugs! So that weighs into my equation.

Can people claim residency on owned sites? For example if I bought a site at Pelican Lake RV Resort, could I use that for FL residency? I think FL has a 6 month max you can stay at a place like that, not sure it's enforced, but I think it's for residency reasons.

After this discussion and realizing how much I love my house and my coach, I likely will do nothing. The timing for financial gain though may push me to do something and sometimes that vulnerability or risk can be a good thing that pays off in the end. I'm comfortable where I am now but something super amazing could be ahead with change. I could use some change but this is a back and forth dilemma.

Thinking out loud...

 

[Retired]

We look at everything we own as just stuff.

If we are standing at he mailbox watching the house burn to the ground with everything in it, we are going to be thankful that we are alive.

If you came into our house, you would look around and think we have been robbed. we are minimalist and dont desire to own a bunch of stuff.

We had a small house built on a small lot in a really nice HOA. Low maintenance, easy to keep clean, easy landscape maintenance, perfect for us.

 

[AbdRahim]

Well. I was looking for a house in a warmer (not hot) place. I really would like a house with provision for the coach. First off I cannot find one that fits my needs, in an area of interest, that is not contingent as soon as I see the listing. People are offering cash and forgoing contingencies on houses they have not even seen. Offerings are way above asking price, so I am priced out of the market right now, it seems.

If you are not going to buy another house, now is the time to sell. Get rid of most of its contents as well. In 2-5 years the value of these overpriced houses are likely to drop significantly.

As for the coach, I would not sell, unless you are planning to be homeless for a few years. I am told people are already ordering 2022 models. And you will pay top dollar for the next coach, so not rally any net gain there. Plus think of all of the money you will put into the new coach, getting it to where this one is. Just my $0.02.

@JabberJaw: where did you find the port home? I have been looking for an affordable one.