Relocating

stomachmonkey · 03-07-2007, 07:05 AM

Am planning to relocate from NY to FL.

I own my own business so relo is all on me.

Went down a couple of weeks ago w/the wife to start scoping out communities.

I need to sell my house in NY 1st. Going on the market sometime this month.

Wife mentioned yesterday that we should consider renting in FL to give us time to find the right place. She figured 5-6 months.

I have a problem with that for a couple of reasons.

My wife is picky when it comes to houses. We had looked for a bigger place here in NY a couple years back. She looked for over a year and could not find anything. Real Estate brokers stopped calling her which I think is unheard of.

Second is the expense of essentially relocating twice in addition to the rent money. I figure 5-6months of renting will cost me around $10k. That includes storage for my stuff during that time.

Then there is the problem of finding a short term rental situation that would accomodate a family of 4 with 4 cats.

As far as Capital Gains on my house sale here in NY. I'll realize a profit of $350-400k on the sale. How long do I have to put some of it into a new house before I half to pay on it? Do I need to put the money somewhere to "protect" it. What would that be and what's the shortest term.

The fact that the RE market is in decline could work in my favor. If I sit for a bit I can probably get more house for less. But then I worry about interest rates going up and will that eat into any gains?

Anyone have thoughts on this?

Thanks
Scott

motion · 03-07-2007, 07:10 AM

Scott,

Good luck on your move. Sounds like a huge step for you.

As far as reinvesting your profits, you don't need to worry. If you are married, you can keep $500,000 in gains tax-free. So, no hurry to re-invest. Stick the money in several high-interest savings accounts. Look at INGdirect.com and HSBC. You should get close to 6% with no CD-type early withdrawal penalties.

Jim Richards · 03-07-2007, 07:18 AM

Quote:

Originally posted by motion
As far as reinvesting your profits, you don't need to worry. If you are married, you can keep $500,000 in gains tax-free.

...as long as you both have lived in your current home at least 24 months in the last 5 years.

Zeke · 03-07-2007, 07:35 AM

And, you have 2 years to reinvest the money even if you had a taxable profit. You don't, so you're free to do as you please. I think renting is a good idea. You say the market is declining, so the decline may very well pay for your rental period. I say that partially because acclimating to a new area does take some time, and the fact that your wife may take some time to find her house.

Big Ed · 03-07-2007, 07:50 AM

The Florida real estate market is in freefall. I think you'll do well financially if you are willing to wait.

masraum · 03-07-2007, 07:53 AM

Just out of curiousity, to where in FL are you thinking of moving and what's your business?

widgeon13 · 03-07-2007, 07:58 AM

Markets on the west coast of FL are wide open right now, I was in Sarasota last week and more stuff is for sale than you can believe. That's my observation. Many new spec homes, models furnished and unfurnished, older homes and recent construction that is occupied. More than enough to choose from and in all price categories. Crazy prices on the water (canals), inland seems to be about 1/2 waterront prices in a lot of cases.

tc-sacto · 03-07-2007, 08:02 AM

Well if you are ready to buy, my brother has a custome home in Port St Lucie for sale. It's brand new. I think he has it listed $500,000 under current market values. Would bre a good deal for someone who can afford it.

the home:
http://www.tesoroproperty.com/

The community:
http://www.tesoroclub.com

Ok, now I've done my good deed for the day. Promote the home for my brother, possibly help a buyer.

stomachmonkey · 03-07-2007, 08:27 AM

We are looking in the Wellington area, just below and to the left of Palm Beach.

My mother moved to Boca 15 years ago and my brother followed a year later after his divorce. My In-laws moved to Boynton 1 1/2 years ago so they are all within a 20 minute drive from Wellington. The benefit there is they come for a visit and go home after a few hours rather than staying for DAYS!

We only stayed in NY because my father was ill for many years and could not travel. I needed to stay so that whatever time he had left he could spend getting to know his only grandchildren. And I wanted them to remmeber him as well. He passed in August last year so no reason to stay anymore.

I'm a creative director. Have clients in the video games, home care, and toys businesses. Am also a partner and Board member of an infomercial production company that develops or licenses it's own products.

None of my clients are in NY, my infomercial co is but we have board meetings once a month and flights are cheap enough.

For my work all I need is a broadband connection and an airport.

stomachmonkey · 03-07-2007, 08:31 AM

Quote:

Originally posted by tc-sacto
Well if you are ready to buy, my brother has a custome home in Port St Lucie for sale. It's brand new. I think he has it listed $500,000 under current market values. Would bre a good deal for someone who can afford it.

the home:
http://www.tesoroproperty.com/

The community:
http://www.tesoroclub.com

Ok, now I've done my good deed for the day. Promote the home for my brother, possibly help a buyer.

Nice place. Wife likes that. Pretty much what we are looking for in a home. You sur eon price? Port St Lucie is a bit North for us but not totally out of the realm.

rammstein · 03-07-2007, 08:38 AM

Not sure what your time-frame is, but its a great time to be a buyer down here. Especially North of Dade. Palm Beach County is downright cheap- you'll get a great house, and you will never regret coming to FL. Its great, and like you said, flights are cheap.

I don't think you'll see more of a decline after another 6 months down here, but I wouldn't feel rushed either. The correction more or less happened, with a bit more to go, but it won't spike back up- no reason to.

stomachmonkey · 03-07-2007, 09:29 AM

Quote:

Originally posted by rammstein
Not sure what your time-frame is, but its a great time to be a buyer down here. Especially North of Dade. Palm Beach County is downright cheap- you'll get a great house, and you will never regret coming to FL. Its great, and like you said, flights are cheap.

I don't think you'll see more of a decline after another 6 months down here, but I wouldn't feel rushed either. The correction more or less happened, with a bit more to go, but it won't spike back up- no reason to.

That's the thing.

I figure by the time I sell my house the FL decline will have leveled off and even if it dips more it'll be insignificant so I don't forsee the need to rent.

Market sucks up here as well. A year ago my house would have lasted a week on the market. Today it'll probably take 3 months to go. There is just so much inventory out there. And near as we can tell we lost $50-75k in value on our house already.

My fathers house has been on the market for 6 months, old Colonial that is absolutely perfect in every way but the bedrooms are small which kills you today. The most comparable house in his area sold a year ago for $30k more than we think we can get for my fathers. House had 1/2 the property and without the 1800 sq ft my father added onto his.

We figure we are loosing $80-100k on that one.

rammstein · 03-07-2007, 09:40 AM

Don't beat yourself up over the drop in the last year- in the big scheme, I assume your father and you have both owned your houses for many years, and you have still done very well. Furthermore, think about it this way- if you sold your a year ago, you would have bought at the top down here anyhow, and lost $ here.

I'd put your house on the market at a decent price, but don't price at the very top- go a bit under. Also, you mentioned the large inventory. Its in your best interest to have your house SUPER presentable- get the landscaping taken care of, seal the driveways, clean EVERYTHING, etc. If you are priced right and you are the cleanest house that prospects see, you'll get it done.

Bake chocolate chip cookies in the house the whole morning of any open houses/showings. Smell is the first and most powerful thing when people enter your home. Sounds dumb and fruity, but its worth doing. Hell, you can get a pillsbury dough log and just bake those up. Don't go the candle route, its not the same.

stomachmonkey · 03-07-2007, 09:51 AM

Quote:

Originally posted by rammstein
Don't beat yourself up over the drop in the last year- in the big scheme, I assume your father and you have both owned your houses for many years, and you have still done very well. Furthermore, think about it this way- if you sold your a year ago, you would have bought at the top down here anyhow, and lost $ here.

I'd put your house on the market at a decent price, but don't price at the very top- go a bit under. Also, you mentioned the large inventory. Its in your best interest to have your house SUPER presentable- get the landscaping taken care of, seal the driveways, clean EVERYTHING, etc. If you are priced right and you are the cleanest house that prospects see, you'll get it done.

Bake chocolate chip cookies in the house the whole morning of any open houses/showings. Smell is the first and most powerful thing when people enter your home. Sounds dumb and fruity, but its worth doing. Hell, you can get a pillsbury dough log and just bake those up. Don't go the candle route, its not the same.

Yeah your right I would have lost on the buy side but may have opted to rent while the market corrected but my father as usual was inconsiderate and lived to long. He would have turned 73 yesterday, i miss him.

That's life though, you play what your dealt.

Have been getting my place in shape. Did fresh paint inside, new carpets and just had all the tile and grout professionaly cleaned and any lose broken tile replaced.

Rented a storage unit and have been packing up to reduce the clutter in the house, make sure the closets are empty etc...

Can't do much outside till spring. Snowng today.

berettafan · 03-07-2007, 10:38 AM

Quote:

Originally posted by milt
And, you have 2 years to reinvest the money even if you had a taxable profit.

Incorrect.

berettafan · 03-07-2007, 10:40 AM

Be aware of those Fla. r/e taxes. The only clients i know that complain about real estate taxes as much as NY homeowners are Fla. homeowners.

stomachmonkey · 03-07-2007, 10:49 AM

Quote:

Originally posted by berettafan
Be aware of those Fla. r/e taxes. The only clients i know that complain about real estate taxes as much as NY homeowners are Fla. homeowners.

Yeah I know. But no state income tax so there is a bit of an offset. Then there's the homeowners insurance so back to square 1.

Scott