Selling in a down market and buying a more expensive property, assuming both properties have depreciated at about the same rate, can make you money. Waiting for the market to rebound can actually cost the seller more money than buying up in a down market.
When real estate values are down it is the right time to buy a larger property and take advantage of the discount. Consider this; you own a $1,000,000 property that is down 10%. Your property is currently worth $900,000, or down $100,000. A $2,000,000 property that is also down 10% is currently worth $1,800,000 or down $200,000.
If you make the trade and wait for the market to rebound 10% you have created $100,000 in equity.
Thursday, June 26, 2008
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