EIGHT REASONS TO SELL YOUR HOME AND RENT

Robert Campbell, California real estate broker and author of the book Timing the Real Estate Market, agrees this may indeed be a good time to cash out of the huge equity windfalls that many homeowners have accrued in their personal residences in the past few years.

“Real estate markets are cyclical, prices don’t go higher forever.” Campbell gives eight reasons for selling your home at today’s high prices and renting:

·Tax-free profits of up to $250,000 are available for single homeowners, and up to $500,000 for married couples.
·If you are going to need the money in the near future (college education, retirement, start a new business, or whatever), it is better to sell your home when you know the money is there as opposed to when it may not be there.
·Prices for high-end houses tend to be more volatile than low-end houses.
·In expensive housing markets, renting may be cheaper than owning. This can be true even when you factor in the tax benefits.
·Paying rent is not like burning money when property values are falling. It’s smart.
·The longer you have owned a home, the smaller the tax benefits. With each passing year, the amount of the monthly payment that goes to interest becomes smaller and smaller, thus reducing your tax savings.
·Condominiums, as opposed to detached houses, tend to fall in price at a faster rate during market downtrends. The reason is less condo demand vis-à-vis houses.
·Most people’s net worth (50-75%) is store-housed in the home they live in, making their home a real estate investment whether they like it or not. And protecting one’s financial assets from devaluation is something stock market investors wished they had done in 1999-2000.

“I have never seen a financial market – whether it’s stocks or real estate – that has boomed to extreme prices without a serious correction,” says Campbell.

"I doubt this market will be an exception to the rule."

CONTACT INFORMATION:
Robert Campbell
RealEstateTiming.com
Phone: (858) 481-3235
Fax: (858) 481-3100
Robert@RealEstateTiming.com