I’ve knocked on a lot of doors in the last month and the thing I’m hearing the most is “we want to wait so we can get more in a year.” Though this may be true, it’s also a truism. Property goes up in value, within a healthy market at least, between 4-7% each year depending on area. So that is a given.
There is, however, one small issue many potential sellers don’t realize. Whether they are downsizing or upsizing, the cost of real estate they purchase will ALSO cost more money. So any move will be lateral.
Another important factor is that interest rates are at a 50 year low. If they remain static then great! But they’re only going to go back up. Therefore, any extra money made from hanging on to your property another year to maximize your return, could easily be lost by a spike in interest rates.
I just had a client who sold his home, in a healthy market, bought into a new one while locked into a ten year term. The move is lateral, but this person will be clearing off a mortgage that is not sustainable, moving to a home better suited and securing a better rate.
So, with all these factors clearly favouring a move this year, why then would you wait?
If you or anyone you know is considering buying or selling real estate soon, please have them contact me and I will gladly help explain the process to help your referral make the most informed and important decision.
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Halifax Real Estate – A modern approach