Tag Archives: Market
Whatever money you would get out of the property today is your investment in that property. What kind of return would you get if you invested that same amount of cash into another investment vehicle like a mutual fund or money market?
There are a few key elements to consider when making your decision. First, many property owners find it difficult to manage rental properties when they live in the same town as the rental properties. It is extremely difficult to manage a property across the state or the country.
The only other factor where you may lose money trading up in a local marketplace is if you purchase a home when interest rates are rising. If you are holding a 5% fixed rate mortgage on your current home, and the current interest rates are 6.75%, you may consider that a loss as well, because the cost to borrow the same $200,000 you owe on your home is now higher.
Whether or not to sell a home in a slowing market depends on several factors. Are you planning to purchase another home? Must you sell in order to purchase that other home or to complete a job transfer? Must you move this year, or do you have the luxury of selling at your own pace?