Mid November thru Mid January is typically an excellent time to pick up investments and/or move up as prices are soft at this time of year.
This strategy has been one I’ve followed for 3 decades to the advantage of my client base and myself. Why?
- Kids are back to school creating busy and less flexible schedules
- Folks have committed funds shopping for gifts
- Holiday gatherings keep focus off looking for properties
Move up scenario:
- If you sell a $300k home for $270k, you take a 10% hit = $30k loss
- When you buy the ‘move up’ house and get a 10% advantage on $450k, that could = a $45k savings.
- You buy a house, for example, that will rent for $850/ mo., typically costs $65k. = 15.7% ROI
- At a 10% purchase discount, you’d pay $58500 = 17.4% ROI
- Additionally, you now have a quicker ‘equity build’, an equally significant part of investing in property. ‘Equity build’ is the 401k type of gain real estate has, where you don’t pay tax on the gains of appreciation until the property is sold. Maybe not even then ! – but that is a sit down consultation.
Point: this is a good time to ADD to your realty holdings be it
- a first time purchase,
- ‘move up’,
- picking up an investment,
- or a vacation property.
This is NOT the time, in my opinion, to sell a home and move to an apartment, or in other ways LESSEN your realty holdings – unless there are other circumstances of an unusual or more complex nature.
Call to sit down and chat further., PA