It makes sense to move in a down market!
Did you know that if you are trading up, you are better off moving now rather than waiting for a market to recover? That is a fact. Let me show you why!
HIGHER PRICE EXAMPLE 1:
1) Your home is worth now $2M or 20% less than earlier on (say it was circa $2.5M before)= $500,000 less.
2) The one you want to buy is now $3M or 20% less than earlier on (say it was $3.75M before)= $750,000 less
3) The gap was $3.75M less $2.5M which is $1.25M
4) The gap is now $3M less $2M which is $1M
You are better off in this example by $250,000 selling in a down market if trading up. (20% of the difference).
LOWER PRICE EXAMPLE 2:
1) Your home is worth now $1M or 10% less than earlier on. (say it was circa $1.1M before)= $100,000 less.
2) The one you want to buy is now $1.5M or 10% less than earlier on (say it was $1.65M before)= $150,000 less
3) The gap was $1,650,000 less $1,100,000M which is $550,000.
4) The gap is now $1,500,000 less $1,000,000 which is $500,000.
You are better off in this example by $50,000 selling in a down market if trading up. (10% of the difference).
And that doesn’t take any account for savings in stamp duty either.
So to discuss further how you can take advantage of the current market conditions, please call me or email me and I will be delighted to meet up. It is part of the service I provide to you as the local real estate expert.
As always, please feel free to give me a call if I can assist with any real estate matters. Thank you.