Over the next several months I will probably write about my thoughts on the housing crisis. It is going to effect me in ways I did not expect it to. I plan to move in with my girlfriend in the next 12 months and that means I need to sell my current townhouse. I have resigned myself to the fact that I will most likely lose money on the sale but I am just not sure how big the loss will be.
I figure I have a cash loss and an economic loss. The cash loss is equal to the cash proceeds after the real estate commission and the mortgage is paid off. The economic loss is the cash loss offset by any tax benefits I have received as a result of owning the house such as my larger itemized deduction due to mortgage interest and real estate taxes. The economic loss is less than the cash loss.
I am fortunate that I do not have to sell if the loss is too great. I am not going to be foreclosed on or anything like that and I could potentially rent it out to cover some of the mortgage if I cannot sell it next year.
I am also wondering if I when I go to sell the house if I should empty it out completely or show it with my furniture in it? I guess my real estate agent can help me with that one.
Wednesday, April 23, 2008
The housing crisis and me
Posted by Karen at 9:20 AM
Labels: Real Estate
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