Here’s a two-year moving plan for those long-timers who:
- Have substantial equity in their home, but
- Don’t want to pay any capital-gains tax, and
- Want to move out of town – but not sure where, exactly.
This is an adventurous experience, and good for those who are retired and want/need to travel around looking for a new home while seeing more of the world.
Step 1: Rent your house for a year.
Step 2: Go visit/live in your favorite towns. Spend a month in 12 towns, or four months in three towns, etc. This will ensure that you get a good feel for these destinations before buying a home there.
Step 3: Sell your rental house here, and buy a home in your new favorite town via a 1031 exchange.
Your CPA will recommend renting the new home for a year too, so you’ll be a vagabond for 24 months or longer. But you’ve wanted to do more traveling – here’s your chance before setting down for the duration!
To really hit the jackpot, go to an area that is cheap enough that you can buy two – one for a rental too.
If you cannot take your Prop 13 basis with you it may not make sense. Especially if you go to a State like Texas where property taxes run 3%.
Is anyone going to Texas any more? Last I heard, the luxury-home prices in Austin were the same as here.
Only $2m:
https://www.zillow.com/homedetails/10001-Thaxton-Rd-Austin-TX-78747/64597906_zpid/
The $3k/mo taxes. might be off-putting.
Agree and I don’t think people should expect that every town will automatically be cheaper than California.
Take a year or two and cruise around. You don’t want to make a mistake!
mega fires….mega droughts…..access to reliable energy……access to clean water…..access to decent medical care……all theses things were not a concern 20 yrs ago when approaching retirement.
but now…?? choose wisely; not all of us can live life as a prepper.