Our friend, Scott Lewis, of the Bald Man Group – Keller Williams Realty in Coue d’Alene Idaho shared this amazing video he produced regarding downsizing this current housing market. Most people believe that in a down market, you should buy a larger house to maximize the savings. Scott’s perspective: downsize into a smaller home, pay it off quickly at extremely low interest rates, and live without a mortgage.
Sellers: How Downsizing In This Market Is An Opportunity to Build Wealth
December 20, 2011 By 2 Comments
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[...] Sellers: How Downsizing In This Market Is An Opportunity to Build Wealth December 20, 2011 By Jonathan Osman 1 Comment [...]
Charlotte - Southpark
Couple main issues that he doesn’t address here, for the underwater person:
1. selling your home in order to “downsize,” nearly impossible for most
2. if you happen to sell your home, where does the $30,000 come from to pay off the mortgage at closing? Not many people have $30k lying around
3. even if you have the $30k to pay off mortgage, you still need a down payment on the new house. Where will this come from? That’s another $20k out of pocket.
All in all, looking at nearly $50,000 in cash needed to make this kind of move. And this example is for a below median priced situation. Most people would need upwards of $75,000 to make this happen.