Hello-My wife and I are in the process of buying a condo. We presently own and have lived in our present condo for several years. We have $140,000 in savings and $36,000 in a Roth IRA
that we intend to use for partial payment.
We need approximately $66,000 more to pay for the condo that will cost $262,000.
Our question is what makes the most sense, to get a mortgage for the difference of $66,000 until we sell our present home and pay off the mortgage in full. If we do take a mortgage and try to sell our present home, we will have to rent our present home out until we sell it. The $66,000 will come from an IRISA account so it will push us
from a 15% tax
bracket to a 25% bracket.( we have yearly income
of around $60,000)
Also,if we see our rented condo withing a year, will the money we receive for it be taxed at a higher rate
since it will no longer be our primary residence?
Your help would be greatly appreciated. Thank you, Patrick