Exact Answer: After 2 years
There are multiple reasons why one may need to sell property, especially a house. Generally, one needs to stay 15 years in a house before selling it.
But, no one knows when the tables would get turned unexpectedly, thereby leading to an unwanted consequence of selling a house. A house is considered the most important financial asset of an individual.
Hence, it is quite natural that a person may wish to earn the equity of the house or property before selling it. One can gain a huge amount of profit by selling a house.
It’s only professionals who sell their property soon after buying it. They have great knowledge in this particular field.
How Long After Buying A House Can I Sell It?
|If one wants to earn profit||After 2 years|
|In cases of emergency||Anytime|
Sometimes, people tend to sell their house property before their tentative tenure. This may be the result of some unwanted problems which of life.
There may be a plethora of causes, like the buyer’s death, relocation of the workplace of the buyer. Some other situations like a health emergency, financial instability may also lead to swelling of the house.
The emergencies demand instant financial support which one can acquire by selling property. Sometimes, the house may not suit the buyer and so decides to sell it.
Generally, there is no limited time bound beyond which one can sell his/her house. One can sell his / her anytime he/she wishes to.
But, by selling a house before one year the owner may incur some losses. It may deprive him of the financial advantages due to ownership of the house.
There is a specific breakeven horizon beyond which one should not sell the house.
This may lead to financial losses. In some situations, one can sell the house before the breakeven horizon and can even ensure profits. There are some circumstances where it is applicable.
For instance, if you buy a house, spend some money on renovations thereby increasing the resale value of the house. You can earn great profit in such cases.
You have the option of selling your house as per your choice. But, to earn the minimum profit, you should wait for at least 2 years before selling it again.
Well, if you wish to sell your property before 2 years, you should not forget to calculate the values and figures. Try to calculate the real worth of your property in terms of market value.
After doing so, deduct the buyer’s and seller’s closing costs from the imagined figures. Any kind of taxes paid during the period of ownership of the property should also be deducted. After deducting all those charges, you can carry the further processes.
Why Should I Wait For So Long To Sell My House After Buying It?
There may be some other evil consequences of selling a house before 2 years. You may have to pay the taxes due to capital gain. This may be the consequence if you wish to sell your house before 2 years.
Selling your house before 2 years may also lead you to pay the prepayment penalty due to the mortgage. These are the consequences which one has to go through if you decide for selling your property before 2 to 5 years.
It is completely your personal choice when you would sell your property. But, before selling one should calculate net proceeds after owning the ownership of the house.
There are also some financial assets involved when you wish to sell your property soon after buying it. These costs include renovation fees, standard commission fees, inspection fees. Other costs like a concession to the seller and the mortgage penalty would also have to be cleared.
By selling your house within one year of buying it, then you will have to pay the capital gain taxes. By selling your house after a year but within the duration of two years, you may have to pay higher capital gain taxes.
By selling your house after 2 years, you don’t need to pay the capital gain taxes. The more time you stay in the house, the lesser the tax you will have to pay.
The capital gain taxes keep on increasing if one spends less time in the house. The breakeven horizon should at least be calculated before thinking of selling the house.
Sometimes, the market is great enough to appreciate the value of your house right after 1 year. I’m such cases, you just need to keep the selling costs money in mind and sell it.
Sometimes, the natural appreciation of the house is multiplied by forcing some additional appreciations. It is especially useful for house flippers.
Selling a house at an appropriate time is completely an individual’s choice. But before selling the house, he/she should keep in mind the losses and profits he is going to incur.
The buyer should not sell the property in any other cases except an emergency. If he does so, he may have to bear some consequences.
There is no fixed rule stating the correct time when one should sell his / her house after buying. It is completely dependent on the buyer.
Besides capital gain taxes, sometimes stamp taxes are also needed to be cleared. In cases of emergency, one should go through the necessary procedures and sell the house.
Life is not a bed of roses. One may face some serious problems where he/she has to sell his property to overcome the financial crisis. You can go ahead because that’s nothing wrong with selling the property.