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
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.