As we all know, the housing market has been set ablaze for quite some time now. For homeowners, this market is the main contributor for the new found equity in your home. This brings to mind the million dollar question.
DO I SELL???
It has become increasingly tempting to take advantage of doubling, tripling, or even quadrupling your initial investment. This current market can be highly profitable for someone liquidating assets without the intention to repurchase. For example, a landlord who doesn’t want to be a landlord anymore, or, a transition to a retirement home.
If you’re selling to upsize, you have to weigh out the pros and cons. Yes, you may make money on the house you are selling, but, you are also putting yourself in a position to spend a great deal more. This is mainly due to lack of inventory which results in bidding wars and drives up the cost. Clearly a cycle that is hard to break.
If you decide not to sell, refinancing is a great way to take advantage of the increased values. There are unlimited options as to what you will be able to do with the new found equity in your home. Maybe you were hoping to move to have more space. Why not add to what you already have?? Perhaps it’s time for a new kitchen or backyard oasis. It’s undoubtedly important to look at all scenarios before deciding what makes the most sense for you. Fortunately for you, you are in the drivers seat because you already own a home. First time buyers on the other hand don’t have that luxury. They are learning to have an insurmountable amount of patience. That’s definitely an article for another time.