My parents cashed out of San Diego (along with many many Mormons) and paid cash in another state.

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May 20, 2024
10:22:12am

ToasterChive All-American

My parents cashed out of San Diego (along with many many Mormons) and paid cash in another state.

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ToasterChive

Previous username: Chicarl
Bio page: ToasterChive
Joined: Sep 3, 2010
Last login: Jun 2, 2024
Total posts: 22,125 (418 FO)

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Messages

Author

Time

This doesnt seem real but maybe it is? 33% of home purchases are cash?

Longseason

May 20, 9:19am

Investors probably?

WJCougar

May 20, 9:20am

Plus people cashing out their equity & downsizing

May 20, 9:24am

My guess is that it is not evenly distributed geographically.

TheWanderer

May 20, 9:21am

I know at least 2 friends whose parents paid cash for their houses.

rad dawg

May 20, 9:23am

0% financing? Are they paying gift taxes then? I would think they are using a family loan which requires somewhere

May 20, 10:21am

Lifetime gift exclusion is like $13m, so in this case a parent could "gift" the

Bainge

May 20, 10:27am

But the annual exclusion is only $18,000. As I understand it, each parent can gift that amount to each person in the

May 20, 10:44am

Ah no I think I misunderstood

May 20, 10:54am

Yeah, you're spot on. It's kind of silly to have an annual limit when the

Bainge

May 20, 11:01am

No clue how they are structured.

rad dawg

May 20, 11:13am

Maybe this is a stupid Q, but couldn't the parent just transfer the kid $$$

TheWanderer

May 20, 11:55am

The IRS will care

May 20, 12:11pm

The IRS has never asked me how I paid for my house.

TheWanderer

May 20, 1:25pm

I have friends that did this for their kids. It can be structured just like a mortgage and requires interest to be paid

specsauce

May 20, 10:43am

Rich people avoiding interest rates. Or people who have a ton of equity in their

BlooCoug

May 20, 9:23am

Good point. Boomers downsizing is definitely a thing right now.

rad dawg

May 20, 9:24am

I very much wanna upgrade from my current home, but with 6%+ rates I'd much

Bainge

May 20, 9:32am

I absolutely buy it. Imagine selling a $3M house in So Cal and coming up to Utah

macdizzle

May 20, 9:24am

moving from anywhere in california to herriman feelsbadman

AllHailTheOverlord

May 20, 10:58am

Sounds correct.

Archaea

May 20, 9:24am

If you count selling a home and using that cash to buy a house, I could see it.

Reasonable1

May 20, 9:25am

My inevitable next home purchase will be cash from downsizing.

TheSpiker

May 20, 9:25am

Home sales are down + rates are up. Great % will be cash as people less likely

txblue

May 20, 9:26am

Shows you how much investors are scooping them up.

Adwight

May 20, 9:30am

that doesn't mean it's the new owner's cash.

Cougarclaw

May 20, 10:06am

Blackrock is a major buyer

SnickSnack

May 20, 10:10am

My parents cashed out of San Diego (along with many many Mormons) and paid cash in another state.

May 20, 10:22am

Lots of older folks selling homes they’ve owned forever (large equity) & downsizing

cougXor

May 20, 1:43pm

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