How to tell when to sell

[tallyho8]

I bought this 6 acre property 10 years ago with intentions to use it for a different purpose. Things came up and we were unable to use it for that purpose and have rented it out since then. I am getting older now and would like to make my life simpler, not having to worry about taking care of that property.

Five years ago we were offered $100,000 for it and turned it down. Inflation has gone wild lately and property values are shooting up. I was just offered $150,000 for the property and am considering selling but wondering if I keep the property another year or two if I can get even more.

Through a stroke of luck and being in the right place at the right time, I was able to purchase the property for only $25,000 and have collected rent of $50,000 on it in the last 10 years with little in expenses but probably 2 months of work clearing fallen trees off the property after hurricanes.

I'm 77 and really don't know if I will be able to care for the property next year if another hurricane strikes. In this situation, would you be for selling it now for the offer or keeping it another year or two to see if it gets a better offer?

 

[Jstpssng]

No matter when you sell, capital games gains will come into play. Is there any tax benefit by selling in the future? Do you need that extra money you feel that you may realize by holding off for a couple of more years?

If not, a bird in the hand is worth two in the bush. With rising interest rates and declining home buyers, I doubt that prices will keep rising the way that they have in the last 2 years.

 

[RustyA]

In today's interest rate and real estate market the time to sell is now. Consult with an accountant but your gain will be based on your gain less expenses. These are long term capital gains and taxes are 1/2 of regular rates right now. In a year or two the market might be softer and tax rates higher. I would sell now, after consulting tax advice.

 

[tallyho8]

Considering I had a lot of damages from Hurricane Ida that I still have to write off this year, a profit from my sale would help my tax situation.

Thanks to everyone for their help in making me make the right choice.

 

[scootr]

Congrats ! I love a happy ending. What a win win situation.

Take the money and run, or walk at your age.

 

[seville009]

You know it’s the best time sell when you start questioning/wondering if you should sell ………..

 

[LoveCars]

Personally, I'd put it up for sale. I don't think keeping is the best option.

pou​

 

[Gem99ultra]

I bought this 6 acre property 10 years ago with intentions to use it for a different purpose. Things came up and we were unable to use it for that purpose and have rented it out since then. I am getting older now and would like to make my life simpler, not having to worry about taking care of that property.

Five years ago we were offered $100,000 for it and turned it down. Inflation has gone wild lately and property values are shooting up. I was just offered $150,000 for the property and am considering selling but wondering if I keep the property another year or two if I can get even more.

Through a stroke of luck and being in the right place at the right time, I was able to purchase the property for only $25,000 and have collected rent of $50,000 on it in the last 10 years with little in expenses but probably 2 months of work clearing fallen trees off the property after hurricanes.

I'm 77 and really don't know if I will be able to care for the property next year if another hurricane strikes. In this situation, would you be for selling it now for the offer or keeping it another year or two to see if it gets a better offer?

Prices are good right now. Might not be in 20 years. And I don't think you'll be selling anything at all in 20 years. Bird in the hand thing...

 

[kf4uda]

I agree with others. I would sell.

 

[tradosaurus]

I agree with selling. You are 77.
Enjoy life. You earned it.
Can't take it with you.