Not everyone can wait five years to sell their home, so today we’ll be looking at three times when you should sell early.
Today we’ll be talking about how soon you can sell your home after buying it.
As a rule of thumb, I tell my clients to plan on keeping their homes for at least five years. That’s typically the amount of time it takes to break even on your investment. However, you may find yourself in a position where you can’t stay for the whole five years. There are three times where you should get out early:
“Many homeowners rent out their homes when the market is down or they no longer want to live there.”
2. The value of the area is decreasing: If there’s a clear downward trend in your neighborhood, it may be a good idea to get out. A declining area can hurt your chances of making a profit when you sell in the future. Areas can worsen when things are built or destroyed, such as malls, prisons, factories, etc. Ask yourself whether these are devaluing your home. If they are, you should consider breaking the five-year rule.
3. You hate living there: Making a profitable sale isn’t the only important thing to keep in mind. Your happiness is also a big factor in whether you stay or not. If you dislike your area or the home itself, you shouldn’t force yourself to remain there and become unhappy.
Depending on your mortgage and home insurance policy, you may even be able to turn your home into an investment property. Many homeowners rent out their homes when the market is down or they no longer want to live there. By doing this, they’re using renters to pay off their mortgage, which grows their net worth.
If you’re unsure, you can always list your home just to see what you can get. It doesn’t mean you have to sell!