I purchased a home in CA, near the SF Bay Area. I purchased in May 05. It appears the home may be losing value. I could sell and move-out (I have a traveling job) to another lower-cost home I have.
What do you think? Will the market pick-up in 8-12 months?
If I sell now, I may take a loss.
Any advice appreciated.
2006-07-25 16:43:32 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You could always rent it out and make some money on it that way. That way it is not sitting empty and you are making a little money on it.
2006-07-25 16:47:46 · answer #1 · answered by justmyjusrty 4 · 0⤊ 0⤋
homes are never short term investments. if you sell your home you will have to pay anywhere between 3%-6% so calculate that into the equation as well. if you are ok with that number and you want to sell it, then go ahead and do it. Another scenario you should look at is if real estate prices correct by 5%-10% and then add another 3%-6% for realtor fees if you plan on using a realtor. Real Estate goes up in value if you look at the historical data, but there dips here and there. Mortgage rates are nearing 7% so the real estate boom has definitely slowed down. If you can afford the payments definitely keep it. If you are paying principal and interest on your loan, perhaps you should explore a 7 or 10 year interest only mortgage to see if there would be any substantial savings. If you are experiencing a financial problem and the problem seems to only get worse and you have no future sources of extra revenue coming in, you may want to cut your losses and sell your home. But May 2005 was only a year ago, it's usually not advisable to buy and sell within a year.
Good Luck!
2006-07-25 23:54:33 · answer #2 · answered by Bay Area Real Estate Realtors 2 · 0⤊ 0⤋
Homes in CA are over priced in that area and are bounded to drop dramatically. You are better off getting out now and buying a lower priced home. The Loss in money now will be far better if you wait and you can't sell it in the future for close to the amount you paid. In this day and age it's better to play it safe.
2006-07-25 23:53:12 · answer #3 · answered by SHASHA 3 · 0⤊ 0⤋
Sorry buddy, but I think you're screwed. The housing boom of the last three years is over. Not only is it over, but it is steadily retreating in the opposite direction. It always takes a few years to really feel the the effects of real estate, but I think many many people will be in forclosure or bankruptcy in about 3 years.
There will not be another boom like that for at least a decade.
2006-07-25 23:49:19 · answer #4 · answered by Idunno 3 · 0⤊ 0⤋
My Magic 8 Ball is in the shop for repairs.
2006-07-25 23:51:52 · answer #5 · answered by notyou311 7 · 0⤊ 0⤋
hand-on to your house? i don't know should you?
2006-07-25 23:47:19 · answer #6 · answered by i ♥ music 2 · 0⤊ 0⤋