$1.1m is a lot of money to pay taxes on for middle class retirees!
My point is that they wouldn't be able to rebuy their house, since they'd pay taxes on the "profit," and then need to get another mortgage at 6%.
When I was shopping for a house one of the sellers had a special exclusion where they'd roll the proceeds into a special account that they'd use to buy another house so they won't pay taxes on the profit. I think it's quite strange that RE investors get that exclusion but if it's your primary residence you don't. I feel like it should be the other way around.
My point is that they wouldn't be able to rebuy their house, since they'd pay taxes on the "profit," and then need to get another mortgage at 6%.
When I was shopping for a house one of the sellers had a special exclusion where they'd roll the proceeds into a special account that they'd use to buy another house so they won't pay taxes on the profit. I think it's quite strange that RE investors get that exclusion but if it's your primary residence you don't. I feel like it should be the other way around.