Sell Now, Move Later OR Do a Cash-out, Pay No Taxes Strategy
Now, let's get down to business....
After talking to several of my past clients who are now close friends, I realized that there are so many people that do not know that they can do this.
First, If you were considering selling your property to take advantage of this amazing seller's market, but did not have anywhere to go right of way, you can SELL NOW & MOVE LATER.
What this means in simple terms is that you sell your property in 30 days or less, while the market is totally in your favor, and we negotiate a free rent back for you for 30 or 60 days after closing, as an example.
This way, you have the proceeds from the sale sitting in your bank account and you can now make better decisions as to where you want to move to, including out of state (we can help in both scenarios, locally or out of area)
It's good to know that historically when interest rates go up, values eventually start going down due to the affordability factor for buyers. Now, current low inventory is going to keep sellers in the driver's seat, even when rates keep rising; but eventually, that will start to shift when the available inventory starts increasing due to less buyers being able to afford to buy, and that's when values start dropping.
Here is what has happened with interest rates in the last 10 days;
Alos, they have been consistently going up over the last couple months now. We were in the mid to high 2's at one point and we are now close to 4's across the board for all types of loans.
So, if you were really considering selling but were afraid of not having a place to move to right of way, then, let's talk asap so we can implement this strategy and tap into your appreciation today before it starts going in the reverse direction.
Second thing I wanted to share is that if you want to keep the home that you are living in, then, you might still want to consider tapping into your appreciation by doing a cash-out refinance or opening a line of credit.
A lot of people don't know that the cash that you pull out from your equity is NOT taxable, which is huge! You can take that money and reinvest into your home, buy a turn-key rental property or an airbnb property, as an example.
Little fun fact for you from my previous experience:
When the market turns, and at some point, I am sure it will, the banks will stop doing lines of credit or cash-outs, however, if you already have done it, they can NOT make you repay it faster or call the loan due in full.
For example, back in 2006, I pulled a $210K line of credit on my then home. When the market started to go down before the total meltdown, Chase bank froze my line of credit, however, since I already pulled all of it out, all they could do is keep me on a monthly payment schedule until I paid it off completely. As it was getting paid down, I just could not pull more out, that's all, which was fine with me, and I always had the choice to pay it all back if I wanted to. So, basically, I was in control of that $210K and still had access to it for years to come, which was amazing and helped me tremendously early in my career.
I hope that you found this helpful and if you have any questions, please let me know.
Like I said, we can help you SELL your home and implement the SELL NOW, MOVE LATER strategy or we can connect you to our in-house lender for the cash-out option that I mentioned.
Either way, I am always here to help answer any questions and/or guide you along whatever you are going through.
p.s. Full Quarterly update coming in April but I wanted to get this out while it's on my mind and before it's too late .