A Dream Or A Reality?
Hello everyone. I'm just going to write my thoughts down and see what you think. Please keep in mind that I'm new to this concept, and may not understand things well right now. I need your help guiding me in the right direction, please. Any ideas/advice would be greatly appreciated!
The goal:
To build a house for my family in a great neighborhood to live in for a very long time, god willing. Such neighborhoods (Scarsdale, NY) sell "knock downs" for 850K-1M (with around .2 ac of land). I have an amazing blue print. I'm obsessed about realizing this home to live in.
Facts:
Once I sell my current residency, I will have 500K cash.
Taxes on a new construction could be 30-50K a year.
I can afford monthly payments of 5K.
Construction will cost about 700K.
The problem:
Lack of enough money.
Possibility:
Once the house is built, it could easily go for 2.5M+.
I could get an investor for 500K. That would leave me with a ~ 700K construction loan.
I could move into the new house for 1-2 years, then start a new construction again, sell the existing house and move into the new house. (all of this moving in for a couple of years business is to avoid tax).
Questions:
What kind of tax would I have to pay if I sell right away?
Would I have to pay sale taxes if I lived in the house for 1-2 years and then sold it?
What can I do to realize my dream? Or is this just a dream?
Thanks for your input.
-Jenland
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