A local Realtor referred a local property owner to me this week. He acknowledged that he was deciding if he wanted to sell his home now or rent it when they left the area.
I previewed the home with him after reviewing past sales/features/description on our local MLS and tax essessor records...the owners have done many upgrades including adding some much needed storage and a home office. A perfect rental home for UVa graduate families or new-hires at UVA.
He acknowledged that they had down payment to buy in the area where they are moving and keep their local home. Then I asked, since they had already talked to a Realtor about selling options, if they can buy a new home of equal or greater value than their current home? His answer was that the home would cost less.....I then suggested he investigate the tax consequences of buying a home of lesser value AND that the option of selling their current home in 2 years after renting it for 2 years in a potentially HIGHER sales market would be the WIN/WIN as they could keep their new home as a rental and purchase a newer/larger home in 2 years and eliminate the potential for tax consequences for roll over replacement homes....they BUY in the slower/lower market and SELL in the higher market and have the cost of keeping their current home covered by the rental income - a WIN/WIN in a slow sales market.
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans
"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous
