When prices and interest rates are on the upswing, you can lose money by waiting. Do the math. If a 1% rise in interest rates is equivalent to a 10% increase in price (in terms of your payment) and if prices go up 5% this year, as projected, here are the hypothetical numbers:
Pretend you own a home valued at $500,00 and you want to move up to a home valued at $1,000,000.
In this hypothetical example, a year from now you will sell your home for an additional $25,000 (5% increase). The move up home will cost $50,000. The increase in the interest rate will make the payments equivalent to a $100,000 increase in price. Thus your payments will be equivalent to a $150,000 price increase. In this example, you can effectively lose $125,000 by waiting to move up.
You are ready for a different neighborhood (where you live) or want to spend more time in a resort location like Park City, Utah! I’ve known many people who decided to leave the Kimball Junction area and move closer to the Middle School and Park City High once their kids got older. Others live near the ski slopes but find they spend more time on the golf course. I’m working with several clients right now who are in sales and are ready to relocate to Park City because they can live near any airport. There are many reasons to change neighborhoods. If this has been something you have been considering, now is the time to make the move.
Others find they want to leave their skis and golf clubs in a second home as opposed to dragging their gear from place to place. For these clients, a second home in Park City acts as ‘recreation central’. A side benefit is that these homes also function as a gathering place for family and friends. I’ve worked with many clients who have skied and recreated all over the world and decide to buy their vacation home in Park City because of its year round amenities and proximity to the international airport.
You need a larger home. It may be time for singles or newlyweds who live in condos to purchase a single family home with a yard. Once children enter the picture, it is amazing how the toys and gear multiply. Sometimes a larger automobile is also required. A condominium that was perfect for one or two people can suddenly become woefully inadequate once children enter the picture.
The same can be said for families with children in the teen years. Suddenly that 2-car garage is insufficient to handle a house full of drivers and their automobiles. The floor plan with all the bedrooms right next to each that was perfect when the kids were small doesn’t seem to work once the older kids start bringing friends and spouses into their bedrooms.
If you are considering moving up to a larger home or purchasing a vacation home, now could be the perfect time.
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