Planning to buy a home for the first time. I live in Montgomery, AL. I don't want to live here for too long?
Topic: Business plan for in home care
June 19, 2019 / By Keren-Hapuch Question:
If I buy a house here, does this mean that I have to live in it for a certain period of time before I can sell it? I'm simply buying a house to take advantage of the 8,000 tax credit and also to lower the tax paying. When will I be able to sell the house after I bought it?
Best Answers: Planning to buy a home for the first time. I live in Montgomery, AL. I don't want to live here for too long?
Jacki | 4 days ago
YES & NO !!
Yes, you can take advantage of the tax credit that is being
offered to all first time home buyers. No, you can not sell
the house the same year and still take advantage of the credit.
Although you will pay a small penalty for breaking your
mortgage, you can sell your home the very next day.
So if your intentions are to remodel the house and flip it,
them you can forget about the credit. Keep in mind that
you can make over $30,000 for flipping the house, so
does the $8000 tax credit matter?
In addition, if you are not planning to stay in AL then
think carefully about making this purchase. What would
happen if you moved away? Who would take care of it?
You have many options available, however if you don't have
at least $40,000 to put as a down payment, don't bother!!
The interest and taxes you will have to pay the fist year will
easily eat up the $8,000 tax credit.
I know the tax credit sounds good, but in this current market
it's not the right strategy on how you should invest your money.
Hope this helps,
John Komatsoulis - Business Development Coach
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Originally Answered: I'm planning on moving to LA next year. Good places to live for young adults?
As a Canadian wanting to move to LA, what you do depends on what visa you get. You need a visa from the US government to move to the USA and work there.
The only two that are easy to get are the TN Visa.(for Canadians only) and the H-1B visa.
You cannot apply for the H-1B. Your US employer that has hired you applies for it.
The TN Visa is granted on application at the US border for a fees of $56. However as part of the process you need to present a legitimate job offer letter from your US employer.
For either one of these you will need at least a bachelors degree in certain fields. Look up "TN Visa" at wikipedia.org for a list of the degrees that qualify.
If you do not have a degree or are not a famous performer, the USA does not want you and you can only go there to live there is you find a qualified US citizen to marry you.
As for where you live in LA, you get a place within 5-10 miles of your employer's place of business.
When I moved to LA from Vancouver in 2001 as an electronics engineer I lived in Orange County about a 25 minute drive from work.
You have to stay 3 years minimum or you must pay back the credit. Usually it is not worth it to buy a house if you move within 5 years from purchase. With the current market, if housing prices go down you might have to stay in the house longer to make it worth it.
The $8000 tax credit is not that much if you consider the potential increased costs of homeowning vs. renting. You should work out your anticipated mortgage/insurance/property taxes and compare that to what you pay while renting.
The supposed tax benefits of a house are not truly benefits. You can deduct mortgage interest paid, but unless you are itemizing your taxes already that is unlikely to be of any use to you. I just bought a house and will get no benefit from taxes because we don't itemize, but take the standard deduction (married filing jointly the standard deduction is $11.4k). If you do deduct you really only save a fraction of the deducted amount in taxes, maybe only ~$15 per $100 deducted over the amount of the standard deducation. Don't buy a house solely for the tax break on money paid towards mortgage interest.
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You don't have to live in it to sell it. Once bought you can list it for sale right after closing if you so desire. In today's economy though you would probably take a loss or it would be on the market a long time before it sells. Personally - unless you have extra dollars- I wouldn't buy in today's market unless I was planning on living there for at least 5 years.
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If you have no plans to live in a city or town for at least 5 years, pls do not invest in a home, you can lose a whole bundle of money in a short time, better to rent and look at some other option like putting it in a retirement plan or whatever.
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If you live in it less than a year or two, you will probably lose money on the deal. You have to pay realestate fees, title fees, closing costs, etc.
If you don't plan to live there long you should probably wait.
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Originally Answered: I live in North-East England. Would like to live in USA?
Well I'm going toot my own city's horn. Philadelphia is a cool place to live.
What I would suggest is a lot of research. Go on Craigslist pick a US city and look up jobs and apartments just to get an idea of what the cost of living is and how much you could make. That should give you some idea of what you'll be working with. After that if I were you I would take a trip to which ever city you feel you would like more. Just to get a better feel for the local culture and a better idea of what the neighborhoods are like. And you can learn a more about the job market.
I will say though, you don't want to go to a city like LA or NYC. They are notoriously expensive. The job market here is kind of crappy and you don't want to be stuck somewhere paying rent that's out of control and trying to work in a competitive job market.
Ultimately you can live here on a limited budget, you just have to be smart. Don't come here buying into all the glitz and glam, it's totally not like that for the average American. Come here knowing how to be frugal and smart and you should be ok.
Best of luck! I hope you get here and enjoy yourself. The US has a great culture and I'm pretty sure that if you're open, you'll love it here. If you want to know about Philly at all feel free to email me. :-)