I’ve been pondering this for a while about whether or not to sell my Condo in Seattle and haven’t come to any strong conclusion either way. I’m stuck between a declining housing market (though not as sever as other parts of the country), which means getting closer to break even if I sell or hanging on. Moving is a pain, but I can handle it as I’m single.
Presumably, the consensus is to sell and rent, but I’m curious as to people’s thoughts.
….. sell and rent, but I’m curious as to people’s thoughts.
Our house is going on the market ( in New Zealand ). My wife is sort of nervous due to kids etc, but more nervous about capital disappearing!!
Tried to convince my Sister in the UK to sell July, again now, but they are still looking to list in Feb, despite me pointing out that at the current rate of decline in value, their house is falling at GBP500 per week !!.
Look at how fast prices are dropping then work out how fast your capital is disappearing, it my be going faster than the cost of rent!
Chris’s bio mentions that he sold up and is now living in a rental………
Perhaps I’m still in denial that it really can be as bad as it is… 🙂
My first post, although I’ve been lurking and appreciating CM’s info for a long time.
Your post about selling your condo prompted me to ask. What do people in one of the worst housing markets, Metro Detroit, do? I actually live a mile from a nice downtown area (not so ironically called Main St.) with a farmer’s market just down the road. Those seem to be good things. But I’ve been watching the houses around here for a couple of years. Nothing is selling. My wife and I were thinking of moving to Seattle, but I don’t think we could sell the house.
I thought about listing at slightly over my loan amount, which is reasonable, but still no guarantees in the worst economy in the country. If there was not a penalty for early withdrawal in retirement accounts I’d consider liquidating and paying down the loan. Now there’s an idea for Congress. Get rid of the early withdrawal penalty if you’re going to pay down principal on a loan. Get the dollars off of Wall St. and onto a Main St real asset.
I’m still learning about this, but you could do a seller financed sale or perhaps a lease option to buy. With the latter you would be given a down-payment as well as monthly "rent", and with the former you would get money down and depending on the terms money over time.
Seems to me is whether you own or the bank owns it. If you own it outright, or almost so, why would you want to sell in a declin ing market?
If the bank still owns it, then determine whether your mortgage is more or less what you’d pay to rent. If less or equal, keep it, if your source of income is reliable. If it is not, then consider selling it to get your equity out to the extent possible. If you could rent for substantially less than your mortgag, strongly consider selling, unless you’re very confident about your income. Most experts are saying the real bottom is about a year away–which obviously does not mean the market will then start rising. There are lots of factors to consider that are purely local as well.
i am a real estate broker. if you have a good deal awaiting then go ahead and sell..if you can make some money i would take it
however be extremely careful right now in regards to owner financing. there are a lot of folks out there who can not get a loan
but are still dreaming american. if you wish to sell owner finance see what you can get as interest(state law) .
get as much as you can down at least 20 %, do a credit check, and sell it in a trust deed so in case of default you do not have to go to court you simply take the property back.
Recognising the uncertainty that exists at the moment I would be interested in peoples perceptions regarding rental accommodation market.
Specifically house values have plummeted – people have left owner-occupation and, assuming they are not all living in tent cities, it suggests increased demand in the rental market.
Does anyone know of an authoritative source on rental demand?
Also ignoring the current overall economic crisis and associated risk of losing ones pants – the fall in housing value without a commensurate fall in rent suggests improving returns for new entrants to this market – and by default it would suggest that it may be easier to sell a tenanted house than a vacant one – any thoughts?
What are readers views on the likely changes in the rental market – as far as demand, rents and prices of rental properties goes?
I am planning to buy a house in San Diego, California. Would it make more sense to pay cash (leaving me with $400,000 in savings), or to take out a loan, thus leaving more cash in the bank? Someone said Chris M. rents instead of owns. Could anyone tell me why?
At the time I wrote the above posting about Chris M he did rent.
He has now brought.
Essentaially he valued the time he would have to prapare and settle in, insulating, get gardens going, solar hot water, energy resilisance etc all set up in a location he intends to be in for some time. I am pretty sure he brought the house he was renting as he had found the community etc to fit in with his view of the futre.
As to cash or borrow…… well spend a bit of time going through all the resources here, pages on how to analyse your situation and come up with the best solutions that fit your unique position.
As for our family, (we live in New Zealand) we brought 40acres of good farmland 55K from a city of 400,00, and 8 k from a town of 4000, and 2 k from a settlement of 15! but there is a good local community sprit, farmers markets, and very good support for the local school of 35 kids.
Now we just have to build a house……… my wife is tiring of the caravan she brought!
We are rather more isolated than many would choose, but it suits us, as I grew up in the country and my wife is not realy a city person.
Real estate data from memory from watching a news item 2 years ago showed that the average turnerover time on a 10 acre lifestlye block and house out of the city was 18 months. City people loving the idea of the country life, then finding out the hard way about the realities such as the amount of time spent travelling to town to do the things they did while living in town, and wont give up on, the amount of time it takes to mow a 1 acre lawn….
So take your time in deciding what is right for you…… but hurry up!!! ( as per most recent Chris M articles !! )
PS just read an article linked from the daily digest http://theeconomiccollapseblog.com/archives/american-hellholes
Have a read….