HomeBlogPersonal FinanceWhat to Do With Home Sale Proceeds in St. Louis Share on Like what you see? Share with a friend. What to Do With Home Sale Proceeds in St. Louis Chris Kirshenboim | December 28, 2020 Last updated August 10, 2026 Deciding what to do with home sale proceeds gets much easier when the decisions happen in order rather than all at once. First, park the money somewhere boring for sixty days. A high yield savings account earns something while you think, and very little bought in the first month after closing looks smart in the second. Second, settle what the sale did not: remaining consumer debt, medical bills, anything carrying double digit interest. Clearing those is a guaranteed return no market can promise. Third, find out what you owe. Most homeowners owe nothing on a primary residence gain under the federal exclusion, but an inherited house or a rental follows different rules, and an hour with a Missouri accountant is cheaper than the correction later. Fourth, rebuild the emergency fund to six months of expenses. Only then does the interesting part begin, which is where most people want to reinvest after selling: the down payment on the next place, a rental in a stable St. Louis County suburb, or an index fund left alone for a decade. Six ideas for reinvestment walks through those options, and what the local market is doing gives you the timing side. Chris and the team hold a 4.9 rating across 368 Google reviews and an A+ BBB accreditation, and how we buy houses covers the sale itself if you have not closed yet. People sell their homes for all sorts of reasons and they need to get cash for houses in Valley Park quickly. Sometimes the cash is needed right away to pay a debt, and sometimes they find themselves with an unexpected surplus available to use elsewhere. Instead of spending this money on material objects and things that come and go, why not reinvest your earnings into something that will benefit you down the road? So as local homebuyers in Missouri, we will discuss below some of our favorite ways to reinvest the proceeds from the sale of a Valley Park, MO house! MO Real Estate Crowd Funding A great way to reinvest the profit made from your Valley Park, MO area home, is to put the money into a real estate crowdfunding opportunity. You'll want to research any investment before sinking your money into it, but investing in a real estate crowdfunding opportunity can be a passive and hands-off investment that can really pay off. 529 Plan In Valley Park, MO There is no greater investment than that in the future of your children. By contributing to a 529 plan or a designated college fund, you're not only contributing to your child's future, but you are also teaching them a financial lesson. The money placed in a 529 plan will grow tax-free, and will not be taxed when the money is withdrawn. Many families utilize these savings plans for their children ahead of time, so they are not blindsided by huge bills when their children begin college careers. A Rental Property In Missouri When selling one home, it can be a great idea to reinvest in another. Not only will you avoid capital gains taxes this way, but you will also be able to find a rental property that really performs and generates a substantial profit for you. If one home or investment property isn't working, maybe it's time to try something different! When you find the right rental property in Valley Park, MO, you'll be able to generate an almost passive income, building on the proceeds you have received. MO Home Improvements If you sell an underperforming rental, you can use the funds to improve your primary residence. Building equity in your home as well as adding a feature you will personally enjoy is never a bad thing. Whether you want to improve a dated kitchen or repair an old roof, now is the time to get those things done. While you might be faced with capital gains taxes when you choose to spend the money on improvements, you will be able to take a deduction for your home improvement costs. Plus, in order to face capital gains taxes, you would need to generate hundreds of thousands of dollars in profits. Pay Off Other Debts In Valley Park Do you have high-interest debts weighing you down? Now is the time to clear them up once and for all. Paying money to borrow money doesn't usually make sense. While carrying a mortgage can actually help in some financial situation, but having a high-interest loan or credit card doesn't. Sell My House In Valley Park, MO Sell your house in St. Louis directly to local Missouri home buyers like Chris Buys Homes in St. Louis. And before you go and spend all of your proceeds, don't forget about the looming tax man. When you reinvest your proceeds into a "like-kind" investment, you will be able to avoid capital gains taxes. Always be aware of your tax consequences when you reinvest the proceeds from the sale of your home. You should always consult with your financial planner or CPA before making any financial moves. Learn Some Great Ways To Reinvest The Proceeds From The Sale Of Your Valley Park, MO House! Get In Touch With Us Today To Know More! (314) 334-1481 FAQs Frequently Asked Questions Do I owe taxes on the proceeds from selling my house in Missouri? + Often not on a primary residence, thanks to the federal capital gains exclusion. An inherited property or a rental follows different rules, so ask an accountant before spending. Should I pay off a mortgage on another property with the proceeds? + Compare the rate first. Retiring an eight percent balance is a guaranteed return, while paying off a three percent loan is usually the weaker use of the money. How long should I wait before reinvesting sale proceeds? + Give it a month or two in a savings account. The decisions made in the first weeks after closing are the ones sellers most often wish they could undo.
