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Buying or Selling a Home/should we buy a house now?
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Question
My daughter and son-in-law currently live in a one-bedroom furnished rented apartment in Lakewood, NJ. They currently have one child (with another on the way soon) and will have to move since the owners of the apartment are returning. They are considering buying a starter home since prices and mortgage rates are currently low. They will probably stay in Lakewood for the next two years, but there is a strong possibility that they will move (depending on where my daughter gets a job after she finishes her degree). Would it be wise for them to purchase a house now and then sell it if they would move elsewhere, or is renting for the next two years a better option? What issues should they consider?
Congratulations on their wanting to improve their overall financial wealth. Real Estate is a long term investment. In the current environment, it would not be wise to purchase a property to simply move and sell in 2 years... unless of course you got such a deal that even with a 20% down turn in two years, you had enough profit you could sell, pay all the brokerage, lawyer, title, termite etc fees and walk away... you can also figure out how much you saved on your taxes to calculate the difference.
However your kids may wish to look at the long tern investment end. If they are able to find a place they like and it is inexpensive enough that the mortgage, taxes and insurance = the rents for the area... take a 10% hit on rents and see if the monthly expenses are still covered... then buy and hold... we may be in this cycle for at least a couple of more years.. and then the market will still need to rebound and surpass todays market price to have a return on your money... now more than ever the game is buy and hold.. we are going back to 'old school' ... 20-25% down .. full document loans ... 30 years fixed ... no funny money... short term just because loans...
Good luck ... let me know how it all turns out!
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Connie Wildasinn-Broker,GRI,RealtorŪ
Expertise
Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!
Experience
4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!
Organizations
NAR,
CAR,
WCR,
ABR,
e-Pro,
GRI,
BKBIA,
CHNA,SSG
Publications
Broker Agent Magazine
Long Beach Business Journal
Long Beach Press Telegram
Signal Hill Tribune
Grunion Gazette
All Experts
Zillow - Lead Agent - Advise Expert
Truila - Advise Expert
Education/Credentials
Broker-owner,
RealtorŪ,
GRI,e-Pro,
SSG-Short Sale Certified
Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing.
15 years running top selling agent in Long Beach, South Bay area California.
Top Producer 5 years straight Re/Max, C21, Realtyworld.
Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!
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