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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (42557)	10/4/2005 11:24:11 AM
From: John Vosilla	Read Replies (3) \| Respond to of 306849

From strictly a business sense to me it makes no sense to hold your primary residence as a rental when you move out as you can get to keep all the equity tax free and reinvest it somewhere else, leverage, buy more property and get the higher basis for greater depreciation and tax shelter. That most of these residential properties in the bubble markets generate such a puny return on current market value makes it a no brainer these days. People tend to fall in love with their properties too often.

To: GraceZ who wrote (42557)	10/6/2005 9:06:33 PM
From: David Jones	Respond to of 306849

>>>>they need to compare the return to what they might get in some other tax deferred vehicle<<<< Absolutely but what we have been experiencing is predicated upon appreciation. These types will be some of the first to sell if and when it becomes apparent application has dried up or other vehicles of investment show a better return. Your past comments about capital being locked into real estate could very likely be a hot topic sometime in the future.