Selling house for a Rolex

[CDNWatchNut]

No way...even if downsizing and left with surplus cash, but especially not if upsizing and carrying a mortgage.

[JonaG]

OP bit of a tease. Obviously made good on house purchase and will have cash to spare when sold and perhaps moving to new location or downsizing. Why not get the Daytona? Although, you could also argue that paying off a mortgage should take priority over a wristwatch. A friend of mine was Scrooge McDuck for 10years (drinking water in bars, TV on an fruit box) but he now owns his place.

[Rushhour]

Originally Posted by dnd2984

Where the money comes from is irrelevant. If you can afford without changing your lifestyle go for it.

This.


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[jon54]

Shelter first before any other luxury.

[Nikrnic]

Spend 'SOME' of the profits? If you don't need it for your next move, sure, why not treat yourself..but no on a tona. Well, It's your money..so go ahead, Enjoy.

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[mykii]

If I were downsizing, sure why not? Life's too short. Do what makes you happy.

[Roger Lococco]

Where does the Rolex Daytona fit on Maslow’s Hierarchy? As important as food and shelter?

Or would the Daytona be considered more important? Perhaps even creating an entirely new tier.


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[Tools]

If you are using after-sale profit; paying down equity on another house, or treating yourself to a watch are simply financial decisions, no biggy.

[locutus49]

I took a mortgage out on my paid-off house to fund a Rolex. I don't know if the wife noticed.

[AshCashEmAll]

people can take the title of the post the wrong way. If you're selling your house for the sole purpose of buying a rolex then I would not do that. If you are planning on selling your house anyways then there is nothing wrong with buying whatever you want with your money.

[Skydwella]

Never!

[Jojoshop]

Interesting thread !

[Cloudchaser]

Originally Posted by SpicyMikey

Remember, when you sell your personal homestead you must roll the profit into a new house of same or greater value within a short timeframe (a few months I believe). If you don't then you have to pay a capital gains tax. So in this scenario just don't forget the tax. Depending on your tax bracket this year it could be 10-23.5%. Of course, this is under the assumption you are in the USA.

Other than that, I don't see a problem with rolling out some profit into something else. People do it all the time for other things. Good luck!

$250,000 capital gains exemption (per person, so $500k for a married couple), so long as you've lived in the home for two of the last five years.

[AK797]

Originally Posted by sensational

only got one house, i just dont want to put all profit onto the new house.

been ages since i treat myself

Where in Wales? Might not be enough. But seriously if you are thinking of selling anyway and want to put some of the profit into a Rolex then that's fine as long as you are not hurting yourself over the mortgage payments etc.

[superstarmar]

Originally Posted by Pantheon

Absolutely! who needs a house when you can bath in rolexes in a public restroom.

[Harry-57]

Selling a house for a Rolex? Never.

Spending a fraction of the proceeds of a house sale on a Rolex? Maybe. It all depends.

[Wck88]

A terrible idea if you ask me.

[SpicyMikey]

Originally Posted by Cloudchaser

$250,000 capital gains exemption (per person, so $500k for a married couple), so long as you've lived in the home for two of the last five years.

True. But remember it's a one time lifetime exemption. So usually a couple wants to use that at the end when the shelling their last home or significantly downsizing. You're really would not want to use that exemption to avoid paying taxes on a $15000 watch

Mike

[SPMN]

Sure, why not? Money is money. Is it the smartest decision you could make? No. But then again putting money into watches is never the smartest financial decision anyone could make.

[Aquaholic_user]

Just bought a $265k house an hour ago. Wanna buy a home?

SM-N960U

[Pw92676]

Even if we had more information about your overall financials etc, nobody here is qualified to tell you what you should do with your proceeds from home sale. That’s a decision for you, your family and any financial planners.

To answer your question: I have not used the proceeds of any home sale for any luxury goods. All proceeds have been rolled into subsequent real estate purchases. But my situation may be very different so as they say YMMV.

Good luck with the sale

[Cloudchaser]

Originally Posted by SpicyMikey

True. But remember it's a one time lifetime exemption. So usually a couple wants to use that at the end when the shelling their last home or significantly downsizing. You're really would not want to use that exemption to avoid paying taxes on a $15000 watch

Mike

I don't track all state tax laws, and am not giving tax advice, but at the federal level, that exemption is most definitely not a one-time exemption.

[6538]

Originally Posted by sensational

Would anyone ever do this, spend ''some'' of the profits on a Daytona

It would depend on how much the house sold for.

[Danny83]

Trade it for a Rainbow and leopard then live in a motel

[EEpro]

Originally Posted by Cloudchaser

I don't track all state tax laws, and am not giving tax advice, but at the federal level, that exemption is most definitely not a one-time exemption.

You are correct. It is NOT one time. You can do it every 2 years if you like and are up on your homes or flipping them after renovation. Tax free profit every time. If you have to move for a job you can do it in less than 2 years tax free from the deduction is reduced by the ratio of months to 24 months.

https://www.irs.gov/businesses/small...state-tax-tips

[sea206]

I might have a different point of view than many financially enlightened folks.
I've never understood those folks who walked away from their houses during the economy crisis here in the US. You walked away just because the house you are living and paying the mortgages worth less now than what it worth back then?
I've never considered my house as an investment, it's a darn place for me and my family to live.
At the same time, the typical us Americans keep moving around houses too, who here remained living on their first house?
Rolex as an investment? I don't know,,, it's just darn fancy watches to my eyes.
Just my $0.02

[Cloudchaser]

Originally Posted by sea206

I might have a different point of view than many financially enlightened folks.
I've never understood those folks who walked away from their houses during the economy crisis here in the US. You walked away just because the house you are living and paying the mortgages worth less now than what it worth back then?
I've never considered my house as an investment, it's a darn place for me and my family to live.
At the same time, the typical us Americans keep moving around houses too, who here remained living on their first house?
Rolex as an investment? I don't know,,, it's just darn fancy watches to my eyes.
Just my $0.02

I think most people that "walked away from their houses" did so not because the house was worth less than when it was bought but because they owed more on the house than it was worth AND could not afford the monthly "nut."

[Singslinger]

No.

[GGGMT]

Sure.


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[Nairn1980]

Originally Posted by sensational

Would anyone ever do this, spend ''some'' of the profits on a Daytona

Last time you wanted to remortgage first a hulk.....