In today’s real estate market, there is a very compelling argument that it’s a good time to buy a move up property.
You say, “I can’t sell now, I’ve lost money on my house.” Assuming you’re not upside down and owe more than the house is worth, you may not be losing as much as you think.
Say you’ve lost 20% in value - as shown in the first slide - your “loss” compared with the loss the larger property incurs wouldn’t be as high. The percentage decline is a function of the value of each of the homes. If your loss is $90,000 and theirs is $130,000, then when you net this out you could say that you’ve gained $40,000 by trading up.
You’ve now moved into your beautiful, and larger home. Stay there awhile. You’ll need to hang tight for several years, but eventually inflation will take hold and the price of the home will begin to rise.
You decide to sell at some future point. The gain is 20% in value since you purchased the house. If you had stayed in your smaller home, your 20% gain over that time would amount to $72,000. The gain you’ll recognize on the larger house would be $104,000! Can you see why it’s a great time to move up when the market is depressed?
Rarely is there such a dramatic convergence of low prices and low rates. It can’t last forever. You should speak to a reputable mortgage lender and see if you’re a good candidate for a move up now. Check out Denver Real Estate at my web site, www.GretchensDenver.com, with nearly every listed property in the Denver Market available to see.
Thanks to Steve Harney and Keeping Current Matters for the terrific slides.
This article was first written at LifeStyleDenver.
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