All kinds of considerations come into play in these kinds of decisions, I'm an agent not a not a financial professional, but from my perch on the sidelines there seems to be one more aspect many people forget to consider when they're selling or refinancing a home ... the interest payments that have already been made.
If you've been in a home for ten years in 90066 you may have already put a couple of hundred thousand dollars into interest payments on your property and not paid off too much equity. When you buy a new home you're essentially throwing this money out the window and restarting the clock all over.
This can be fine if you have other good reasons for making the move, but it should never be forgotten when making the decision. A poor decision in this regard can be particularly tragic in the case of refinancing for the sake of improving monthly payments by a few hundred dollars a month or to get money that could as easily be gotten with a home equity loan.
The standard rationale is that it isn't really an issue because everyone buys a new home every ten years anyway and appreciation is the main ingredient of profitability in real estate. Somehow, the expectation that nobody will actually ever own anything seems fundamentally flawed. Be careful & Best of Luck.
And who knows... maybe you'll like being a landlord! :)
Realtor at Milbank Real Estate Services
David Cooper Foreclosure Specialist with 35 Years Investingh Experience. Receive a FREE List Daily of Low-Priced, Bargain Homes for Investors, go to website or Call +1-702-499-7037
How marketable is your home in 90066? Just because you are thinking of selling it, doesn't mean you will be able to sell it for the price you want without discounting it. There are the commission and fees in selling a home that will also eat into you net. Also, the qualifications for getting a new mortgage are really tighter than they were a few years ago. You might not qualify for a new mortgage.
Wow good question and one that is often asked. If your home has equity you could actually sell and move up to a better home in a more desireable area and get that home for "less" then what it might have sold for in years past, and consequently make a profitable business decision.
Keep in mind, the new home should be held for some time, in order for the market to balance it'self and regain its true value.
As the other agents noted, it is tough to answer definitively without knowing more information. That said, moving up makes the most sense, and can be profitable. Let's take the following hypothetical situation:
If you sell a $600,000 house that was $720K (20% higher) at the height of the market, that is a "loss" of $120K.
If you buy a $1,000,000 house that was the same 20% higher at $1,200,000 you "made" $200K.
Net net your move just "made" you $80,000.
Now I know that is simplified, but a good way of looking at the situation in general.
In Mar Vista, 90066, right now, I am selling a short sale that the bank has agreed to accept $1.4M that would have definitely sold over $2M at the height of the market, so there are deals out there to be had.
Let me know if you would like to discuss the specifics of your situation further Sir, so I can better advise you.
West Los Angeles Realty
You pose terrific questions; however, I believe I could answer you better if I knew more about your situation, as well as, the exact location of your home, 90066 covers a lot of area.
To answer a question about a life changing decision deserves more than some pat answer which may or may not apply to your current circumstances.
I suggest you give me a call, so we can discuss your concerns with the time they deserve.
Monk realty The Smart Choice!
It all depends on your comfort level financially. Also, do you have loans and would you need to short sale. If that would be the case, I could guide you through the process, however, if you do not have a loan and you are ok with taking a loss because of the declining market, then you need to decide if you would be happier in another home. It is a great time to buy as there are tremendous deals around town when you consider short sales and foreclosures. I would be happy to show you some options. Please feel free to contact me. Thank you.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
Two factors come into play here. When did you buy? Where would you move up to? Not all markets have been affected equally, some have seen a larger drop in valuation versus others. Regardless, values are down and rates are terrific, so it is a good time to buy.
As long as you have equity in your present home, the current market devaluation is only a paper loss. It might just be a good time to move up!
I think this will make sense to you:
There are more buyers for less expensive homes; there are fewer buyers for more expensive homes.
That means that, in most cases, higher-value homes lose more value than lower value homes because there are fewer qualified buyers the higher the price.