Saturday 27 June 2015

Is now a good time for Hamilton "empty nesters" to downsize?

Like I said last week, [it's a good time to flip real estate] - if you've got it, the demand is there.  Well, the same decreased listing inventory and increased demand that yields good results on a flip also makes it a good for anyone looking to sell a personal home as well.  And this up market may be a particularly good time for "empty nesters" or others looking to downsize in Hamilton.

The general theory is that if you are moving down, you are farther ahead because the value increase on your more expensive house will be more than the increase in value on the lower priced home you are going to move to.  For example, if you currently live in a $400,000 and it is up 10% from last year, then your increase in value is $40,000.  If you're going to buy a $250,000 house that is also up 10%, then it is only up $25,000.  You're $15,000 ahead of the game.

Obviously, it is not going to be quite that simple in real life because the market varies by area and housing style. So if you're also looking to sell in a low-demand area and buy in a higher-demand area, then that may cancel out any net cash benefits.  But it may still make it easier to buy into the high-demand area than it would be otherwise.

If you're thinking of moving and would like to explore options, give me a call or email and we'll have a free no-obligation discussion.  I'd also be happy to give you a price evaluation for your current house so we can compare figures based on some sample properties you might be interested in.

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