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

Sign up, and you can make all message times appear in your timezone. Sign up

Report problem with this ad

May 20, 2024
11:01:03am

Bainge Playmaker

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

lifetime/estate limit is so incredibly high it would apply to maybe 1% of the 1%

Report problem with this ad

Bainge

Bio page: Bainge
Joined: Oct 20, 2009
Last login: Jun 13, 2024
Total posts: 1,379 (2 FO)

Report problem with this ad

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

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad