Selling stocks to use for downpayment on a first-time house/condo or take out a loan instead?
Hi all, looking for some advice. Married couple based in Brooklyn, NY.
My wife and I recently found a condo that we really like and we definitely can see living there for about 5-10 years. Property taxes are a little above than normal, but it is something that we had to just accept especially us living in NY state.
I am putting most of the down payment but I was wondering if it’s wise to take some money out of my stock brokerage to contribute to the down payment. I understand that events like these it’s what your stocks are used for, however, I am curious about how much taxes will I need to pay for selling a decent amount and if its better to take out a loan for the downpayment and use my stocks as collateral so that I avoid taxes from IRS.
I’m not sure how this second method works to be honest, but would love to hear anyone’s experience with selling some of your stock to use for your down payments and how hefty your tax bill was when you filed for that year or next.
***First time homebuyer here, definitely am curious to hear y’all’s approach***