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Thanks!
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If you're married filing jointly, you shouldn't have to pay capital gains unless the sale proceeds are more than $500k. For an individual it's $250k. This applies as long as he lived in the condo at least two out of the previous five years before the sale as his primary residence. I'd still consult a tax adviser because there may be fine print as your husband bought the condo before you got married and I don't know how long into the marriage you have sold it, but in general that's the rule.Other question. If we put all the money back into a new home do we still need to worry about capital gains taxes?
Your title is misleading because I think most come in with the mindset of "don't buy houses in residency lol" but reading the details, it sounds like your spouse is the primary earner of 200k+.
If you plan on being in training for 7-9 years, I think it would likely make sense to purchase instead of rent. Esp when you have a family of 6, I imagine renting a 3bd (minimum) in your VHCOL city may be disproportionally higher than purchasing.
There are probably posters more experienced than me here but IMO if you are staying for minimum of 7 years and your husband basically makes "attending money", it makes sense to buy. Is he in a stable job? You may not need a physician loan to get good rates (sub 3%) and low down payment
If you're married filing jointly, you shouldn't have to pay capital gains unless the sale proceeds are more than $500k. For an individual it's $250k. This applies as long as he lived in the condo at least two out of the previous five years before the sale as his primary residence. I'd still consult a tax adviser because there may be fine print as your husband bought the condo before you got married and I don't know how long into the marriage you have sold it, but in general that's the rule.
If your timeline puts you staying there for that long, I would definitely buy. Personally, I'd put all/most of that cash straight into the home because on your combined income, you should easily be able to build cash-flow home repairs and other problems.
Alternatively, it goes without saying, it's a far better financial choice to just choose to live in a low cost of living area. You'll have more money available for travel, kid's activities/sports, and your own hobbies and extracurricular activities. What is it that makes you feel the desire to stay in these VHCOL are?
I think this is based on your credit score? We went with a local community bank and did regular loans. My credit score was 800+ so I got 2.85% rate w/ 5% down on a 500k home.I didn’t think you could get low downpayment without the physician’s loans and then I heard the interest is usually higher. Plus the added issue that it would be a jumbo loan for average home prices here.
I think this is based on your credit score? We went with a local community bank and did regular loans. My credit score was 800+ so I got 2.85% rate w/ 5% down on a 500k home.
Unless it's a physician loan. Then no PMI. And there are physician loans that do 5% or 10% down as well as 0%.Oh wow. Good to know. I haven’t bought a home before. I thought the credit score only affected the rate. And PMI would be added if less than 20% down