Money in the bank is hardly worth having there! Where have you got cash? Many people after living in a home for 20 years or more have a home that is paid for. You can borrow on the equity of that home for under 4%, I saw 3.75% advertised! Try to get that cheap a loan in the future!
So here is what to think about! See what you can borrow on the equity in your home. If you can borrow $200,000 or more, look around for a new house that is selling reasonable in this market. Why new? New homes have a 20 year overall life, whereas an older home has various components nearing the end of their life.
Look at the history of the real estate market, back in the last big dip, early 80's a house advertised for $495,000 sold for just under that amount. Today the house is worth at least $1.2 -$2 million dollars, waterfront at the Cape with indoor pool, 5 acres of land, ( I am holding the value down)...
Houses we sold at that time sold for $49,990 and today they are in the $300,000's....even in this down swing and in spite of the fact that they are 30 years old.....where else can you make that kind of money?
Some buyers have even taken a loss on their old house, to get into a new house, that has shown extra value, by the new pricing the builders are offering, just to keep their employees working!
If you can work the numbers or not, talk to mortgage officers, talk to real estate people and look around. Some homes are renting for $2500 a month. What is your house worth for a monthly rent?
Anyway, you should come and see our bargain pricing for new homes. If you do not see the house you want in the town you want, make an offer and let us respond. All our models are available on lots in any town where they will fit, but each town is priced different, depending on the value of the land....
If you don't live near us, take advantage of this thinking and do the research, you might end up with a new home. Make sure that you check all the pros and cons, and have some cash in the bank for fall back!
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