650k in equity, had it 12 years, when to cash out getting older

650k in equity, had it 12 years, when to cash out getting older

Member since 2020 · 20 posts · 0 votes

Numbers can be crunched. But what about the other factors of life? 

I have a house and about $650k in equity. House is going to go up some more. But how long to hang on to it? 

House is 70 years old and it's been a giant pain in the *** a lot of the time. Is a lesser pain in the *** nowadays, mostly due to me living on site in part of it. 

I'd have to continue landlording, which I can do, but it's work and I'm kinda tied down by the house in it's current set up. 

I can't pull anymore equity out of it, as I'm business for self.  It's my only property at the moment, all my money is tied up in it. 

I'm feeling stalled with it.  Like I've had it for 12 years, and there's always been this carrot on a stick of the value of the house going up. 

But how long do you chase that carrot around ?  After all it is just a carrot on a stick until you get a hold of that equity/carrot. 

The fun things I'd want to do with that equity/$, like adventure travel, see my daughter more often.. she's across the country, hiking, convert my van into a camper and road trips etc...      Those things are only available for so many years. 

You know, like the equity in this house will likely go up... there's factors indicating that.  But I'm 58 now and if I hang on to it for another 12 years I'll be 70. 

I'm thinking to sell the house, put 20% down on a new condo in a nearby up and coming town called Squamish. Rent out that condo, and just rent a place for myself down by the beach for a while. Do some travelling, covid restrictions, but can still travel to places. 

Get my bearings as to how it is without owning this house and see where I want to go/do.

My house has made me a lot of money IF I sell it. But to be real, it's been like a bad marriage for 12 years... the kind of marriage where you're constantly wondering if you should have done it. I think I'd have regrets if I lived with those doubts for much longer, I think they'd become regrets when I look back. 

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    The equity doesn’t matter as far as taxes. Figure out what you would net if you sold it after all selling costs, subtract your purchase price and you have a taxable gain. If this is less than $250k if you’re single or $500k if you’re married and you’ve been calling this your primary home you can sell tax free and buy something else. 

    I don’t understand the idea that you could get a new loan with 20% down but you couldn’t get a cash out refi on the current house?

    If this is/was a rental you’ll be looking at 15% tax on the gains plus a lot of depreciation recapture. I personally don’t like my 30 year old homes, I prefer less than 20. And these are houses with tile roofs and stucco siding that I neve have to touch or maintain. If it’s draining you of time or happiness, move on. 

  • Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
    5y

    Not RE feedback, but it does sound like you want/need to get out. Seems like you'd be happier cashing out, making good money on it even with all the headaches over the years, and then buy yourself that condo + beach rental + travel. 

    You could easily re-invest that equity into smaller assets across the country, or locally, and get some cash flow that way...whenever you feel like re-investing it.

    Cash is king, so it wouldn't hurt to liquidate on an asset with all your equity that is currently not cash flowing at all. Even more so since you don't have tax burdens on this, and you're willing to downsize. 

  • Member since 2020 · 20 posts · 0 votes
    5y

    There is one other thing to this one. And that is, that the zoning may change soon. In which case it would be up for a taller building.

    We already tried to assemble the block, got a long way and had a solid offer that was close to a million over what our houses would sell for. 

    Then some of the neighbours got carried away and wanted even more money. The developer walked and the deal fell through. 

    Now things are in this limbo land, where it's become a question of,  'do I sell and take my 650k and be happy with that'. Or do I wait.... and perhaps wait and wait forever.... or maybe it's just wait another year or two... nobody knows.  All I know is that in Vancouver BC, arterial routes nearby transit are up for taller buildings. And I'm on an arterial route and though Im close to transit, I might be a block the wrong side of the cut off line for tall buildings. 

    I'm talking to a realtor that specializes in land assemblies this afternoon. 

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