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Actor Richard Gere’s recent move to Spain was not a permanent exit from the United States but a calculated, temporary relocation—a strategy highlighting key considerations for homeowners contemplating living abroad while retaining ties to the American real estate market. According to his wife, Alejandra Silva, the couple always planned to return to the U.S., demonstrating a balanced approach to international living that involves careful life balancing and property management. This scenario underscores important real estate decisions, from the timing of a primary residence sale to maintaining a foothold in a preferred market.
Planning a temporary move abroad requires a clear strategy for your U.S. real estate holdings. The primary decision is whether to sell your property or convert it into a rental. Gere and Silva opted to sell their Connecticut mansion in an off-market transaction, a private sale not listed on the public Multiple Listing Service (MLS). This approach can offer privacy and a faster, more discreet sales process. For those considering a temporary absence, renting out a property can generate income but introduces the complexities of being a landlord, including management and maintenance from afar. A critical first step is to assess your long-term goals and consult with a real estate professional to understand the tax and financial implications of each option.
Selling a primary residence, the main home where you live, has significant financial consequences. In the United States, single filers can exclude up to $250,000 of capital gains from taxation upon the sale of a primary residence, while married couples filing jointly can exclude up to $500,000, provided they have owned and used the home as their main residence for at least two of the five years preceding the sale. Gere's sale of the New Canaan property, purchased in 2022, may have influenced their timing. Selling a home also provides liquidity, which can be used for purchasing property abroad or for a future home purchase upon returning to the U.S. However, it also means exiting a specific housing market, which could be a disadvantage if prices continue to appreciate during your absence.
While personal reasons are often the main driver for a move, market conditions play a crucial role. The U.S. real estate market has experienced notable shifts in recent years. According to data from the National Association of Realtors (NAR), the median sales price of existing homes has shown variability, influencing seller decisions. Making a move during a favorable seller's market, characterized by high demand and rising prices, can maximize profit from a home sale. This capital can then facilitate a transition to another country or be held for a future purchase. Based on our experience assessment, working with a local real estate agent to analyze housing market trends is essential for timing a sale effectively.
For homeowners considering an international move, the key practical advice includes:
Balancing personal desires with sound real estate strategy is the cornerstone of a successful international relocation, ensuring a smooth transition abroad and a viable path back to the U.S. housing market.
