How to pull money out of a property without selling it - Part 3
A reader previously asked:I want to pull some equity out of my San Francisco property and pay as little as possible in taxes or none at all. Is there a way to do this?
Our answer:
In our first article, we discussed refinancing and private annuity trusts. Our second article talked about reverse exchanges. This third article discusses second loans or lines of credit.
At the time of this writing, the Fed raised interest rates to a 5 year high on June 29, 2006 and are probably going to continue on fears of rising inflation. Back in July of 2005, we published a market report (written by Jay Bransfield) explaining what these rising rates affect and why.
As you probably know, this most affects the short term interest rates for credit cards and, even more importantly, second loans or equity lines of credit on your home. It also affects adjustable rate mortgages. In the short term, seconds loans and lines of credit might be good ways to pull money out of your property, but as a long term solution it can be quite expensive. This might override any advantage you might get from not being taxed on the money.
- Mick Orton, Janis Stone, Jay Bransfield
posted by SFResidence.com @ 8:54 AM
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