My family currently lives in a 2350 sq ft 4/3/3car home in New Tampa, FL. The location is great as lots of retail development (malls, etc.) is forthcoming. The challenge is that we'd like to find a slightly larger home with more land to accommodate for our future family's growth. We're hearing that it's a buyer's market (good leverage for us looking to buy but not so good if we need to sell our home to buy a new one). Other complexity is the locations with more square footage and lot size in our price range are not near the modern retail conveniences we enjoy. Land/home prices have increased overall in Florida (as well as taxes and insurance). We expect that they will continue to do over time. We're wondering if we should take on a larger home (a small stretch) now vs. waiting five years and potentially find ourselves priced out of the market. Any perspectives from those in the real estate arena are welcome.
2006-09-20 16:04:00 · 4 answers · asked by BBee 1 in Business & Finance ➔ Renting & Real Estate
If you expect to be needing a larger home, this is not a bad time too look. Even though the real estate market has gone up in FL, it is still a buyers market at this time. If you are financially able, you could shop around for some good deals.
On the other hand, the larger and more expense the home the longer it takes to sell. If the outlook of your financial and career future aren't as stable, you might want to stay put. But if you expect to stay in your new home for more than 5 years, it might be okay.
I wouldn't worry too much about the lack of modern retail conveniences. The Starbucks and Gaps have their way of finding where their potential customers are - they will find you.
2006-09-20 16:15:39 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
Not sure if this would help. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.
It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.
For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).
Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.
Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
2006-09-20 21:05:04 · answer #2 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
The best scenario would be to buy the new property now and be able to keep the existing home, but rent it out for income.
If you can just get the existing home to break even cash flow wise, you would enjoy the benefits of having the mortgage being paid down, appreciation of the value and tax benefits.
Speak with a reputable lender to see if this is possible for you. Usually stretching now will pay off because typically your income will rise faster than other living expenses.
Good Luck
Joe Ballarino
http://www.AmerivestRealtyofNaples.com
2006-09-20 17:49:45 · answer #3 · answered by Joe_Ballarino 3 · 1⤊ 0⤋
Have you talked to your banker about getting pre-qualified for a certain mortgage amount?
I would buy/sell now rather than wait; you will probably be sorry
if you wait unless you can save faster than the properties are
appreciating. Most people can't.
2006-09-20 16:10:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋