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Should you sell now?
Definitely probably.
It depends on your
situation. If you have an empty spec-home that you bought
a year or more ago that you are wanting to cash out of... I
would say yes. I'm pretty sure that you will not be
increasing your profit this spring or summer. Prices are
flat, or declining, right now on most of those types of
investments. We are encouraging investors with empty house
to list with us now, price them aggressively, and get out
of the speculative markets. We have sold three investment
properties that we owned in the last 6 months, and have no
regrets.
What about land sales?
In most cases, I would suggest selling now if you are holding
land in a speculative investment portfolio. A big part of
the run-up in land prices has been driven by speculation in Palm
Bay by builders and speculators. A lot of these people now
own a bunch of land that they don't need, they are selling now.
If you have land that you have no intention of building on in
the next 12-18 months, you should seriously consider selling.
Give me a call and we'll see what makes sense for you.
One way
to profit from a down market.
It takes guts, but if
you feel that our market correction is going to last a year or
more, and you would like to get into a bigger, or nicer home
here is a gameplan for you. Let's say you live in a $400k
beachside home and you want to get into a similar home on a
canal. Homes like that are running $650k now. Sell
your home now for $400k, and rent a nice house for a year, which
is easy to do. There are tons of rentals out there at
great rates. If the market drops 10% in the next 12
months, you will be able to upgrade to a waterfront home for
only about a $185k additional investment.
Some positive and
negative factors to weigh in a flat/declining market
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Attributes |
Keep makes sense when... |
Consider selling when.. |
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Time frame
of planned ownership |
Long term
investment |
Short term
investment |
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Desirability, uniqueness of property |
Awesome
neighborhood, waterfront, beachside, golf course |
Speculative
land, older "dime a dozen" homes, problem floor plans or
lots |
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Annual
expense of ownership |
Rent covers
most of mortgage
Nice piece
of land that you can afford |
Expensive
house, hard to rent
Property
with high HOA fees |
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Current
inventory levels |
Not many
similar to choose from |
Hundreds to
choose from |
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Expected
future supply |
Area or type
of property is built out |
Hundreds
coming on market. e.g.- (High rise Condos) |
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Please fell free to
call me to discuss the market, and your questions about
it. There are a lot of reasons to
sell now, but you have to make sure the realities of our
current market meet your goals and plans.
Give me a call:
Jeff Beck 321.722.9906 |
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