Dear Move Up Buyers,
There has probably never been another time in history when you have such an opportunity as right now to buy a home. Interest rates are historically low. Prices have generally fallen and there is a large inventory of homes ready for you to choose from.
If you are thinking you will lose money on the home you bought you need to think again and read this very, very carefully.
Let me keep the math very simple to illustrate the truth about the market for move up buyers.
If you bought your home for 100,000 and it will sell for only 90,000 right now due to 10 percent deflation, moving up will make you money. If you buy a larger home that sold for 150 thousand before the 10 percent deflation your price will now be 135 thousand dollars. You may think you lost 10 thousand on your home but when you account for the greater decrease you gained 5 thousand dollars because the larger home decreased in value 5 thousand more than your home decreased.
If you wait to buy when prices are going up you will then lose money. If your 100000 dollar home increases in value 10 percent and a 150 thousand dollar home increases in value also at 10 percent your net loss will be 5 thousand dollars.
This basic economic principal is one reason the rich get richer and the poor get poorer. Rich people understand that to buy when prices are going down is how to gain wealth. The rest of us usually get caught up in the euphoria of the emotionally charged up market and buy when prices are going up. Guess who is then selling. You got it! The Warren Buffets and Bill Gates of this world are selling when most people are buying and buying when most people are selling.
If you have been thinking of moving into a larger house do yourself a favor and give me a call for a consultation. If you know of someone who is thinking of buying a home please don't keep me a secret.
Bless You, Paul
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