Oct 22, 2010

Location, Location, . . . and Luck

In case this news item passed you buy, take a moment to drop your jaws at Donnie and Kathy Fulbright's recent home-selling success. They sold a home in rural North Carolina that they'd originally bought for $6,000 for a cool $1.7 million.

Granted, they'd owned it for 34 years, and real estate values have risen since then, even with recent dips.

But the key ingredient here was the buyer -- Apple Inc., which was building a huge data center on the surrounding property, and were eager to buy at almost any price. This article in the British press describing the sale is a fun one, with lots of photos. And here's another informative report.
I wonder whether the Fulbrights paid the closing costs?

I also hope they've got a good accountant, who can figure out a way to reduce their capital gains tax hit, which is 15% for most people. The $500,000 exclusion for married couples will get them only so far here. I saw one online commentator saying that, as an "elderly couple," they'd be eligible for a special one-time exclusion, but that's no longer the law -- everyone gets the same exclusion.