Taking Profits from the House

Discussion in 'Trading' started by hefty1, Aug 8, 2005.

  1. hefty1

    hefty1

    This is by far the largest trade I've made to this point. One has to think of the housing market as a trade. The wife and I have somewhat more than $200k in profits if we were to sell our house. There are a ton of nice condos for rent on the water here in Tampa for very reasonable prices.

    My question is, what would be a tax effecient investment strategy for our proceeds. I'm thinking 2 yr cd but I'm not all that creative. We hope to buy again in that time period. Are there tax benefits from a basket of preferred stocks? Are there moderately safe 7% returns out there?

    I appeal to my fellow traders for ideas :) Thx in advance.
     
  2. balda

    balda

  3. Ricter

    Ricter

  4. hefty1

    hefty1

    *With glazed eyes and blank stare* Yes, making money the Fabian way is the answer we have been looking for. His way to riches is for me.

    Damn Tanq and tonics :)
     
  5. hefty1

    hefty1

    Ricter,

    I think Krugman has a point. My area is way too hot right now. Its not San Diego, its Tampa for crissake and the only ones driving the Carreras are the developers. I cant see how the mkt can support these prices.

    If everyone is talking real estate, then its time to exit.
     
  6. Ricter

    Ricter

    Who was it who said more money is lost trying to get the first and last eighths...
    ; )
     
  7. Brandonf

    Brandonf ET Sponsor

    Never has a bubble topped when the world was on bubble watch. I would certainly not be buying new real estate on speculation right now, but I don't know that its time to sell either. I'm just south of you in Sarasota and prices here are up about 40% in the last year, however every place you look people are asking is this the top. Saying its a bubble etc. Its not a bubble when everyone thinks it is. Everyone said internet stocks were a bubble in about 1996/97..then in 2000 they were all believers and thats when the top came.

    Brandon
     
  8. hefty1

    hefty1

    Very true, look how early Greenspan was with his irrational exuberance comment. Selling now is certainly a weighty decision. They say u never go broke taking profits, but who's to say I won't be priced out in 2 yrs and looking for a house in Newnan , Ga. But to be liquid and cherry picking opportunities, not necessarily R/E, would be sooo nice.

    PS Brandon, to say that you would not be buying R/E on specualtion reinforces the fact that I dont believe that smart money is pouring into the sector any longer.
     
  9. Ricter

    Ricter

    Well one way Krugman gives for determining the state of your local market is to look at the number of listings and that trend. Are they piling up?
     
    #10     Aug 9, 2005