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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (44663)	1/17/2006 7:15:57 PM
From: ild	Respond to of 116555

New law allowed people with several properties to pocket tax free gain on all their properties -- they just have to move every two years.

To: CalculatedRisk who wrote (44663)	1/17/2006 7:30:40 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 116555

You'd be surprised how many folks used the "2 out of the last 5 years" loophole to leverage multiple principle residences. Another angle was/is owner/builders or contractors flipping every two years. And yes, a whole new breed of speculators was born, moving from one hot market to another "undiscovered" market....every two years. it was not unusual for me to meet people that had already participated in three different mini booms before landing in hawaii. It became a joke to us here. We'd hear all the same old blah, "I love it here. I'm gonna die here." etc. two years later they're gone with as much of that 500k as they could squeeze out of their house. With the leverage provided by lowered interest rates we had people owning three separate "principle residences" at one time! The most successful at this strategy seemed to be 35-50 years old and few, if any, kids. Made the moves that much easier from town to town. Using the above strategies it was quite easy to sell a home for 600k, bank 250k tax free, move to another cheaper locale and do it again. I think Idaho is one of the last booms still going. That info is a couple months old so it may have cooled now as well.