An identical unit in my building looks to be selling for $400k, so that may be a signal to sell, if I could get the same price. Let’s run some quick numbers…
The reason why $400k is a special number is that I bought it for $150k, so $400k is the end of my tax-free gains. I’ll pay long term captial gains on any money beyond $400k. The government can go fuck itself.
I’m going to assume that the condo in the long run will match the rate of inflation at 3%. I’m going to assume that the long term return of the stock market in my lifetime is 7%.
$28k a year returned from the stock market.
Cost to rent something similar is around $2245. That would correspond to a 6.7% loss. If I sell it and then trade for something similar, I’m not going to make much money on the spread, and if I purchased again, my fixed costs would go up. So I should only sell if I know I’m leaving or if I think I can get a rental for like $1500 or $1000. If I didn’t have cats, that would be easier to think about.
I like the idea of not having so much tied up in one asset. I don’t like the idea of floating around in a $2300/month rental environment.