The Shock of Sweden's Housing Market Is Hitting the Country's Currency

Re:The Shock of Sweden's Housing Market Is Hitting the Count... by Shaanie on Wednesday November 15, 2017 @12:12PM (#15705374)

If I buy a house for 50k and want to immediately move laterally to another house worth 50k then the cost is 0 + overhead. If I buy a house for 50k and want to move laterally when it's worth 100k then the cost is the taxes of the 50k profit + overhead.

This gets even worse if you want to buy a larger house (if appreciation is percentage based).

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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by notyourday on Wednesday November 15, 2017 @01:37PM (#15706431)

That's not correct.

In the second case:

You bought a house for $50k, which in a year appreciated to $100k. You sell the house for $100k, pay the capital gains of X% on the $50k of appreciation which gets you $100k - ($50k * X% ) to play with.

You lateral move would not be to a house worth $100k, it would be to a house worth $100k-($50k * X%) because you d not have $100k, you only have $100 - (50k * X%).

If you wanted to defer capital gains and play with entire 100k, then instead of doing a sale you would do 1031 exchange.

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