How To Make Money In A Down Market! - Squamish Real Estate MLS Realtor
Think Of Owning Real Estate as a life-long process. You will always need a place to live so how you ride the ups and downs of the real estate markets over your lifetime could be profitable. One key thing to remember is that even if the value of your home goes down it does not change your life in a dramatic way. Your mortgage payments don't change if your property value goes up or down so long as you are able to make your mortgage payments your life can continue with a roof over your head. Making money off real estate in a rising market is obvious .... buy a property wait for it to increase overtime, but the trick lies in the fact that you may need to upsize or downsize as the years go on.
Here are the basics for riding the real estate roller coaster:
You believe the market will be rising over the next few years = buy the most expensive property you can comfortably afford.
Why? Real Estate prices move in percentages up and down... 10% increase in value of a $250k property is a $25,000 gain while if you move up to a $500,000 property you have gained $50,000.
The next scenario is not intuitve to most...
You believe the market will go down over the next few years = Downsize to a smaller less expensive property! Sell your more expensive $500,000 property now and downsize to a less expensive $250,000 property.
Why? Real estate prices move in percentages... you will lose 10% on your property no matter what, but instead of losing $50,000 on your $500,000 home you will only lose $25,000 on your $250,000.... YOUR UP NET $25,000!
You will be poised to reap the benefits of the next up trend in real estate prices when they arrive.... they ALWAYS do!
You have to look at owning real estate as a lifelong process!
http://www.morganrice.com
Morgan Rice - Squamish
604-849-2668
