I am selling a house for $314 K and buying one for $280 K. That means a profit of 34 thousand dollars. Right? Do the math.
Wrong. To sell house #1 I must pay the attorney, the realtor, and a transfer tax of $1.5%. Chump change. To buy house #2, I have to pay a deposit of $3,000, 1.5 % transfer fee, house inspector, termite inspector, attorney, title search, and for some reason the mortgage banker extracted a check for $795 from me, I forget for what.
That puts me at minus $5,000. I get to keep my car, a 1995 Taurus with 110,000 miles.