Don't Sell Your Properties
There has been bad news everywhere in housing market in US last few months. It has been causing huge anxiety among the homeowners. A lot of people just wonder whether they should sell their homes or not.
If you only have one property and are able to pay your mortgage payments, or you don’t have to sell your home now, then just don’t sell it because you have fears on the falling housing market.
If you have more than one property, you should weigh the other options, such as rent it out, or sell it with lease options. If your monthly payment is too high and you have negative cash flow after deducting the rental incomes, you should consider refinance the mortgage into much longer term with a fixed interest rate, such as from 15 years to 30 years term to reduce the monthly payment.
Here are some reasons why you should not sell your properties right now if you don’t have to:
1. Housing market goes up and down just as stock market. But, over a longer term, it still goes up. If you don’t have to sell your property, but you sell it now because of your fears, you’ll lose.
2. Real estate property is different from other commodities, you can use other people’s or lender’s money to buy it and you can rent out to make money on that. Not only it increases in value through renting, but it also increases in value with time. If your rental incomes can cover your mortgage payments and any other costs, you should not sell your property now and buy more of them instead.
3. Because of the subprime crisis, a lot of people have lost their homes and more people need to rent. Rental market is up and will be up more.
In addtion, there has been apparment shortage because of the booming housing market in single family homes and builders reduced or stopped building appartments in last few years . It takes much longer time for new appartment buildings to catch up.
4. There are a lot of foreclosure properties available for you to buy at a price of 30% to 50% below the market value. There were two huge auctions on bank owned properties in Atlanta last two months in addition to the regular monthly courthouse auctions. There are also a lot of motivated sellers want to sell their homes to you below the market value with flexible term of owner financing. You can see what I’m talking about through online search.
5. There are much fewer competitors. Unseasoned investors are scared to death and they are getting out of the market.
6. Everyone knows that buying low and selling high can make you rich. If you can buy nice properties at the price below 70% of market value, and you believe the property prices will not be cut more than 30% in your market, and your rental incomes can cover mortgage payments and other cost, you should buy more, rent out, and hold them for at least five years. Even better, you may be able to generate some positive cash flow now. You should be able to have huge profits when market turns back after five to six years later.
7. There are more properties you can buy without your own money than ever. If you can buy properties without your own money, then you should buy more. There are many deals available in the market with creative owner financing, zero down, and lease option. Go online and search for them.
- Flag content
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.Close
- Content flagged
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.
- We're Sorry
- This service is temporarily unavailable. Please come back later and try again.