Homestead mailing list

[Gene GeRue <genegerue AT ruralize.com>]

> A drop in value of 25% would wipe out most speculative buyers.

I've never seen such a drop.

> The author points out that less than 1% of real estate is resold in less than
> one year.  Seeing as how one has to occupy a house for TWO years in order 
> to avoid paying capital gains on the appreciation, you reckon there's some 
> motivation to hold onto real estate for more than a year?

The fact I took is that such a stat counters the loose claim that the 
current strong appreciation is the result of lots of investors in the 
market. The classic southern California flipper sells the unit before 
escrow closes on his purchase or as fast as possible, happily paying his 
cap gains on the profit.