Why is now the perfect time for moving up to a larger home? First time homebuyers have enjoyed low mortgage rates, along with an $8,000 tax credit from Uncle Sam, so they have reaped many benefits in this market. But, if a homeowner wants to move from a townhouse or condo to a larger home, but is very concerned their current home is not at the value it was a few years ago, read on; Because all properties in an area have depreciated by the same percentage, there is a huge monetary advantage in moving up now. Assume a home was valued at $250,000 and then depreciated by 20%, leaving a current value of $200,000. A previously valued $500,000 home at 20% less is now $400,000. A homeowner would sell their home for $50,000 less than its high value, but could buy the larger home for $100,000 less, giving that homeowner a $50,000 positive increase.
That's rather wonderful isn't it? Of course the old rule "buy low, sell low and buy high/sell high" applies - you just can't have one from column A and one from column B, but this is an added bonus for the move up buyer. Need more convincing? Interest rates are still phenomenal and choices of homes are at an all time high. Doesen't get much better than this.
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