Why is 2014 such an important and opportune time to sell a home?
There are a number of great reasons 2014 may be the best moment for many to sell a home, especially for those in San Diego County. Many are scrambling to rent and buy homes in SoCal, but this is also an indicator that selling now might be the smartest move.
Here are seven reasons to sell your home before the clock runs out:
1. Home Mortgages
Mortgage programs have been making a big comeback. This means more options, and easier access to credit than most are aware of, at least for now. This could enable many California homeowners to get the loan they’ve wanted to move up or downsize.
Very attractive interest rates are also important. Depending on the new home being purchased, and the amount being financed, acting now, before rates return to previous highs, can mean over $1,000 difference in monthly payments. This is without home prices going up even further.
2. Low California Home Prices
While California home prices have rebounded at some of the fastest rates in the nation, San Diego still offers many undervalued house deals for those not wanting to miss out. Think about what adding 20% to the price of your dream home is going to mean if you wait another six months, plus the higher payments, and long term interest it will add if taking out a home mortgage. There is nothing to indicate that SoCal home prices will go anywhere but up over the next 7 years. Anyone planning to buy as a residence or rental for investment will be best served by doing it as early as possible.
3. Passive Income and Wealth Building
Selling for passive income and wealth building may seem like a contrasting statement. However, given the roller coaster ride the SoCal housing market has been on for the last few years, it may make great sense. New neighborhoods are on the rise and could offer better growth and incomes for those cashing out of old homes. Low rates and easier access to leverage can also enable sellers to expand their holdings if they move quickly.
4. Once in a Lifetime Opportunity
The great outlook for the San Diego market, as well as the recent swell in values enabling more to sell, is creating a truly once in a lifetime opportunity. Many will never see these conditions again in their lifetimes.
5. Tax Benefits
For those with rising incomes, selling houses and taking the tax liability before they are in a higher tax bracket may make sense. Others may wish to seize on the current pool of buyers seeking owner financed homes – spreading out tax liability, rather than incurring it all at one time. Some may wish to put proceeds from property sales and funnel them through self-directed IRAs, and back into real estate, only with the benefit of tax deferred, or tax free growth and returns. In some cases, it may be the time to execute a planned transfer to a trust or other tax preferred legacy structure, philanthropic cause, or family member.
6. Getting Out of the Landlord Trap
San Diego news media outlets recently highlighted the significant number of SoCal homeowners who had become “accidental” landlords. Many have chosen to rent out their old homes on needing to move to reduce bills, find jobs, or simply to be closer to other family. Investing in rental properties can be incredibly profitable, but it isn’t for everyone, at least not on a solo, DIY basis from a long way off. Many might find it wise to cash out these homes in 2014 and restructure investments by buying homes or multifamily apartments which are better suited to investment purposes. Some may find they can generate far more wealth and income a lot easier by switching to choosing turnkey real estate.
Summary
2014 is an incredible time to by real estate, especially in Southern California. For this reason, as well as the others above, the second half of 2014 presents excellent timing for many to sell their San Diego County properties, and possibly upgrade while home prices and rates are still so low.
Do the math carefully, and find the best way to ensure a rapid sale before the year is up. Be sure to take advantage of the best benefits of selling and restructuring while things are this good.
