what would a reasonable explanation be on why you would do that when the other house is less than three minutes from where you are now. The both cost about the same so it wasn't like a steel or anything.
2007-12-13 10:59:10 · 5 answers · asked by DJM 1 in Business & Finance ➔ Renting & Real Estate
The new home may have features the old one didn't, and the buyer of the new home may be financially secure enough to start investing in real estate.
Possibilities:
The buyer believes that property values in that subdivision are going to increase and wants to take advantage of that increase.
The buyer knows he/she can't sell their old home for much of a profit right now, since the real estate market is sluggish. Rather than take a lower price, they may want to hold on to it to seller it for more when real estate prices go back up.
The buyer may HAVE gotten a "steal" on the new property. You can check your county's property tax records to see what they paid for the new house, and compare it to what you know the property values to be in that area.
2007-12-17 07:36:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some HOA's do not allow rentals in their subdivisions, so be mindful of that.
If it is a desirable area, perhaps it is an investment. Some landlords like to be in close proximity to their tenants, maybe they feel the tenants will take better care of the place if the landlord is close by.
2007-12-13 19:34:15 · answer #2 · answered by godged 7 · 0⤊ 0⤋
As an investment as property usually rises in value and to have an income from the investment at the same time. Perhaps the second property was better decorated, more modern, bigger garden, sunnier position or something.
Why not ask the person who did it?
2007-12-13 19:05:39 · answer #3 · answered by bri 7 · 0⤊ 0⤋
Maybe they don't like their neighbors...but more than likely they simply liked the other house more than their current home and decided to buy it while they could. Given the current condition of the housing market, they may feel renting their previous home is better than trying to sell it in a down market.
2007-12-13 19:43:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Its an investment. You expect the value to go up. Or you expect your parents to want to move near you.
2007-12-13 19:04:21 · answer #5 · answered by hottotrot1_usa 7 · 0⤊ 0⤋