Reply to It’s a crisis that there are no SFHs in commuting distance to jobs with good schools

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]What is your proposed solution?[/quote]

DP
Tax second and third and fourth homes out the wazoo.
Higher Tax on investment properties 
Restrict the amount of money non-citizens can spend on real estate. 
Restrict corporate ownership of SFH
Restrict foreign countries from owning property in the US
Better enforcement of money laundering in real estate

I’m sure there are more. 
[/quote]

No one is buying second or third homes in DC for investment. You can't turn a profit on it. [/quote]

A lot of the homes in Potomac also snow bird homes.

The tax law encourages older couplers to live in very large homes instead of downsizing. . I live in Potomac. My neighbor around 80 has a home worth 1.7 million he bought in 1974 for $150,0000. if he sells he owes a board load of capital gains taxes. Only 500k plus improvements is basis. I have been in home he bought brand new in 1975 and has kept up on updates but no real capital improvements. So even with 500k exemption, 150K purchase price and maybe 150K worth of update receipts he would own tax on a 900K gain.

If he downsizwed on top of tax on 900K gain be 90K realtor commission, maybe 50K closing, minor repairs and moving costs then another 30K to close on new place. So we are talking another 170K.

So it makes sense for an 80 year old couple to live in a six bedroom, five bath 6,200 sf house til they die. They moved their master bedroom suirte to main level. They dont even go upstairs or downstirs much.

If only the IRS and Relators allowed House swapping. Lets say a younger couple with kids and a smaller 800k home could magically swap house with them for no fee. They just exchange titles and IRS did not charge cap gains that older couple would move in a second.

I am 61 in similar issue. By time last one is completely out of college and moved out I will be 67. My three kids untill  married, xmas, Easter, graduation parties, bridal showers, engagement parties, big birthdays all take place at my house. They are single in small places. Now what at 70 I am expected to pack up a huge house, pay massive costs when I could just leave it to kids in estate. My wife said absolutely no. And she does not even like this house much. She rather buy a two bedroom condo elsewhere and keep home and use that as a second home. Selling homes should be cheaper and folks over 75 should be able to sell tax free.

Oh yes they are. You think all those 20,000 sq foot mansions in McLean and Potomac are the only house for that Arab family?  It’s just one of their American estates. [/quote][/quote]

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