Buying or Selling a Home/Sell?

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Expert: - 3/2/2010


Question
Connie
I own a house (actually the bank does) in western Canada but I am sure this question would apply to anywhere.
Our house has gone up in value considerably since we bought it ten ywars ago, tripling in value.
However, all property values have increased in my area.
We have not benn able to, unfortuneately, make much of a dent in the principal.We have even had to refinance a couple times.
My wife and I are in our fifties, and our children, who are late teens, still live at home.
Eventually they will move out.
Would we be better off financially, heading into retirement, and considering the fact we still carry a lot of debt both with the mortgage and line of credit, credit cards, etc., to sell this home and move into a more modest home and use whatever profit? from the sale to pay down debt?
Or, as a friend in the financial industry has suggested, would the best option be to continue living here even after the kids are gone, and continue to pay down the mortgage and debt into retirement, with the idea being that eventually we will get ahead and be low or no debt and own the house or at least most of it.
To put the question more simply, do we stay in a big house with lots of debt into retirement with the hopes of eventually paying it off, or do we move into a smaller more appropriate place and use the profit to pay down debt, therby freeing up room to travel,etc.

Answer
HI Bud... congratulations on having tripled your equity... not an easy feat in this market place world wide...

That being said, you should contact a good financial adviser to see where your debt/income retirement needs to be for you and your family...

Without paying down the debt you will always have that mortgage bill to pay... even when you are 90 and if you are unable you may loose that home at a time when you don't have equity, as you can see it goes up and it most certainly can go down...

You may be better off selling this home, relocating to a smaller property, and buy with cash and have no mortgage at all...

I do not know how Canada works on taxes or how a mortgage effects your earned income... again a financial adviser is the one to ask..

Good luck

Buying or Selling a Home

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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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