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You are here: Home / Boulder Real Estate Blog / Upgrading to your next home in a “down” market-it’s time

Upgrading to your next home in a “down” market-it’s time

January 16, 2009 by The Boulder Property Network

Why buy up in today’s “down” market?

Today’s market provides the perfect environment for upgrading your home. A simple example of how this works is shown below:

Sell a $300000 house that has gone down 10%=30000

Loss of $30,000

Buying a $600000 house that has gone down 10%=60000

Save $60,000

Net effect to a buyer is + $30,000

Combine this with the lowest interest rates in 30 years and it becomes the perfect opportunity. In addition, many sellers are willing to help with buyer’s closing costs today.

Another way to maximize the benefit, is to keep the $300,000 house in the above example and rent it. Real estate always cycles and that $300,000 house in this example will go up again. By utilizing this method, in this example, you don’t lose the $30,000 and in fact, gain from future appreciation and tax benefits.

Obviously, this is a simple example, but there are more opportunities today than ever before.  Don’t miss out.

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