Condition of the home…
You can sell higher in a shorter amount of time if you take care of the condition of the home. Buyers don’t have the time to come in and fix things. And they just don’t have extra money available to fix up properties either. With the subprime market gone and 100 percent financing unavailable, buyers will be tighter with cash.
- Real Trends, July 2007 -
Think about it…
Purchase a home for $250,000 in a normal market with 20% down… $50,000. Figure a conservative appreciation rate of 4% per year on average. In the first year, the home will have appreciated $10,000. $10,000 on a $50,000 investment is 20%.
A four percent appreciation may not seem like much initially; however, what other investment vehicle can return this rate of return on average year after year?
Yes, mortgage interest, taxes and other small expenses are a factor. These items though, are tax deductible for a qualified home; so in reality, the government is subsidizing the purchase.
Have extra cash parked somewhere?
Diversify your portfolio… Buy a second home…