Princeton Town Topics – Let’s Talk Real Estate – July 16, 2008
SCALING DOWN
Your youngest child has just left home and your present house now seems enormous. Your “empty nest” has prompted thoughts of selling your home.
Before you make a move, you should consult two important professionals.
Your real estate agent will be able to tell you the value of your current home and the availability of houses in your preferred area. Buying a smaller home can lower your property taxes, simplify property maintenance, and generate cash that can be put into income-producing investments. You will also want to consult your tax planner about the tax laws that allow capital gain exclusions whether you buy up to a more expensive home or buy down to a less expensive on. If you are moving downtown from the suburbs in order to be close to cultural centers, theaters and restaurants, there may be “quality of life” issues, such as noise or parking.
Your Realtor and your tax planner can assist you in making your decision.16
