Friday, June 13, 2008

Sell or Hold

I was talking to the BF the other day. His condo (the one he listed as principle residence) is still not selling. He’s thinking of putting it up as a rental unit instead.

I don’t know what to say. I’m happy because him having a condo in my city means extra incentive if the opportunity for him to move back comes up. However, the practical side of me is thinking of –what else- finances.

His relocation package pays for Realtor fees. At $400K, 7% on the first 100k and 3% on the rest, that is a chunk of cash. Also because it’s his principle residence the capital gains are tax free. Well, I think if he converts to a rental and sell it later on, he only have to pay whatever gains over 400K but still what a hassle.