I run into this issue all the time because we bought our house at a decent time of the housing market while the interest rates are low. Now the market is increasing and interest rates are higher. If we sell we can take advantage of making more off of our house, but then to buy a new home we pay more in interest.
Was your house bought for investment purposes? For people who invest in property, the interest rates are often not a significant factor of consideration as they profits they make when they eventually decide to sell the property would make up for the interest rates of making a new acquisition. I'd say the best time to sell is when you can fetch a high price for your property and you have located another area in which to invest your money. What property investors normally do is to buy an area with potential for profit and once the potential has been fulfilled to their satisfaction, they would then look for another area where the property prices are still low and therefore have more potential for profit. Then they'd sell their property and invest the profits they made into the new area which they identified as having higher potential. (Think about expansion of a city, you buy a property near the outskirt and as the city develops to the area you invested in, you sell that property for profits and invest in another property near the new outskirt of the city) However, as an investor the problem arises when you decide to break off your mortgage early as some banks have obscenely high penalties when you break off your mortgage early. It would be better to go to a representative at the bank to discuss the terms and conditions and negotiate the penalty rates in that case. (I've had some banks who agreed to reduce my penalty after negotiating) http://www.thestar.com/business/per...sed_mortgage_can_cost_you_dearly_roseman.html
As an investor the best time to sell is when the market is high so the prices are high too, if you have credit opportunity it's a great time to be selling and buying real estate because when there is no credit the prices come down.
There is this awesome lady by the name of Dani Johnson who started this series called the War on Debt. She talks about this exact thing. If you were fortunate enough to have such a great interest rate and to have a nice place to stay, then why would you want to cash out and spend more money and be in a less desirable situation? If I were you I would stay there and enjoy what you have unless you have to move due to things that are beyond your control. Listening to Robert Kiyosaki also taught me that when you do the opposite of what others do then that is when you can really benefit the most.
That's a good tip, learn from those who know, stick to your titles, don't fall into the temptation of a small profit knowing that in a couple of years that small profit can worth 10 times more for example.
I hate to spout out cliches, but this is a topic where the old adage "buy low, sell high" is appropriate. Buy when the market (and interest rates) are low and sell whenever the market picks up and is high again.
Yeah, you are right, the problem many times when buying low is that we have no credit, so or we have our own capital to invest or we cannot do it even if we know where to.
Indeed. Sometime cliches are cliches for a reason though! In this case, there's really no other way to say when a good time to sell a home is for the average person. Unless you're absolutely forced to sell, getting the recommendation from a real estate agent on the best times to sell is probably the best way to go. Unfortunately, some people don't have the luxury to wait for the optimal time to sell and simply have to take the best offer they get.
Generally speaking, there is no right or best time to sell except when you have found the right buyer with the ability to buy your property at the price you want to sell at. The reason I say that is this; the Real Estate market is unique, the variables affecting supply and demand never allow supply and demand to met, so when there is a surplus of houses on the market ( a buyer's market) prices are reasonable and negotiable, but when there is a low supply of houses on the market ( a seller's market), prices are typically higher than when there is an over-supply of houses. Even in the better market type, for consumers that is, which is the buyer's market, you may find that the houses that are available are not in stream with your taste, additionally, it may take a very long time for a suitable house to show up in the market that you are interested in, thirdly, you may not be lucky enough to get the house at the price you want to pay, even in this type of market condition! So inevitably, the best time to sell in my opinion, is the time when you are ready and able to do so, and when you've found your suitable buyer.
