Wednesday, November 19, 2008

Good Time to Trade Up?

If you're thinking of trading up to a better home in a nicer area, it's better to do it in a down market. Why? Take this example. Your home last year was worth $600,000 and you wanted to buy a $900,000 home. That's a $300,000 increase in mortgage (or cash down). If your home dropped 10%, your home is now worth $540,000, but the home you wanted to buy is worth $810,000. That's a difference of $270,000. It's actually $30,000 cheaper to make that move now than it was a year ago. And the "hidden" benefit is that your property taxes will be cheaper on your new home if you were to buy it now. And that's savings you'll keep year after year!

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