Real Estate: Buying Up In A Down Market
By keithIrv & I have had many savvy clients (and family members) take advantage of the downturn in Real Estate to lock in a long-term equity gain.
The old adage, “buy low sell high” hasn’t changed, but it now has a new twist. Savvy buyers take advantage of the overall market being down a certain percentage from the high.
For example if the overall market is down 10% then a home that was $500k is now $450k and a home that was $200k is now $180k. If you sell the second home and buy the first you lose $20k on the selling side, but on the buy you gain $50k in potential equity for a net gain of $30k. Obviously this is a simplified example, but the point is the same.
Let us know if you think this may be an option for you. As the economy shows signs of warming up the window of opportunity shrinks every day.
This article from Homes: Sell at a loss, buy at a discount
3 Comments
October 20th, 2009 at 11:57 am
I have been seeing things start to pick up as well! You certainly offer some wise advice.
October 23rd, 2009 at 11:03 am
Scott,
This isn’t for everyone, but for those looking to move up it can be a great opportunity. I checked out your site and think it is well thought out and presents nicely. Look forward to seeing you across the closing table one of these days.
November 2nd, 2009 at 10:26 pm
Very Good Points!! I enjoy your blog and will refer to it to keep up on things in Charlotte. I am a realtor in Vero Beach, Florida. Keep up the great work!!