Why wait to upgrade to a larger home? There is no better time.
Visiting a potential client, today, we discussed their plans, and whether the time was right for a move.
First we discussed the purpose of the move to determine if the move is necessary, the answer was no.
But the key for this couple, and of course many others is whether now is a good time financially.
First question that surfaces can we sell our home. Answer, of course, homes are selling, but only the homes priced competitively and staged well.
We ran some numbers to demonstrate how a move could look, both now and in 3-5 years time, or when homes have increased by 15%.
|
|
Sale Price $ |
Loan/equity($k) |
interest |
Payment $/mo |
|
Sale now |
175,000 |
120/40 |
6.25% |
1040 |
|
Buy now |
250,000 |
210/40 |
3.5% |
943* |
|
Sell 3-5 yrs (15%increase) |
200,000 |
110/75 |
|
|
|
Buy 3-5 yrs |
290,000 |
215/75 |
6.25% |
1323** |
Assume: interest rates and prices go up from where they are. Search all area homes for sale Madison Wi
The scenario is just an illustration of someone buying up about 40% larger home- this is quite typical.
*the monthly payment – just mortgage – if a move was made now would be $943, actually lower than current payment.
** if move is delayed till home prices return, payment will be $1323 for the very same home. Interest rates will be higher too.
Final point to make. You will need to sell your home at a cut price, in order to take advantage of a cut price home.
Does this give you an incentive for moving your family now?
first posted http://wi-realestateguy.blogspot.com/2011/12/upsize-your-home-now-there-is-no-better.html
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