Читать книгу Flipping Houses For Dummies - Ralph R. Roberts - Страница 36

In a sizzling real estate market, you can turn a profit fairly quickly by buying a house, moving in, and then sitting back and watching the real estate values soar. This approach works only if you have time on your hands, are speculative by nature, and have a knack for purchasing houses in a hot market at just the right time. This strategy offers several benefits:

 If the market remains strong, your property value rises and you don’t have to lift a finger.

 Your equity in the property rises, boosting your borrowing power for other investments.

 When you live in the home for two years or more, up to $250,000 of your profit ($500,000 for a couple filing jointly) may be tax free, at least according to the tax laws in place when I was writing this book. See Chapter 23 for more tax-saving tips.

Buying into a hot market also carries some significant risks:

 Soaring property values often create a housing bubble, which can burst, leaving you with a home that’s worth less than the amount you paid for it.

 Stuff happens. You can have a great house at a great price in a hot market with the top agent working to sell it and the house still may not sell. Prepare yourself for all contingencies.

Chapter 5 has more details on evaluating the real estate market in any neighborhood you’re scoping out.