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REASONS
FOR SELLING A HOME #1:
Expensive
monthly mortgage interest loan payments on your home.
Alternative Solution:
Refinance your current home loan.
Pros: If you have
owned a home for several years and have not refinanced, you
may be able to refinance the mortgage at lower interest rates
and significantly reduce your monthly loan and/or interest
payments.
Cons: Refinancing
essentially resets the clock on your home loan. This may cost
you money over a period of time, however it is worth doing
some calculations.
REASONS
FOR SELLING A HOME #2:
No money
available to upgrade your existing home.
Alternative Solution:
Refinance or consider applying for a home renovation loan.
Pros: Renovating
and improving your home can increase the market value of your
home. Renovating could prove to be a good investment for when
you do decide to sell.
Cons: Increasing
the value of your home may also increase the amount of property
taxes you pay (depending on the laws in your country).
REASONS
FOR SELLING A HOME #3:
Need
more space than is available in your current home.
Alternative Solution:
Consider remodeling your existing home rather than buying
a new property. A more open-plan style may provide more living
space. Consider enlarging, or adding a bedroom or bathroom
to your existing home.
Pros: Remodeling
should improve the resale value of your home. It will also
save you real estate agent's fees and other costs associated
with moving house. You may need to use your home equity to
finance the project.
Cons: Remodeling
your home may mean an increase in the property taxes you pay.
There is also the danger of over-improving your property.
Some people fail to recoup their investment when they come
to sell their home. So think carefully about what remodeling
will (and will not) add to the value (or resale potential)
of your home.
REASONS
FOR SELLING A HOME #4:
Need
less space than is in your current home.
Alternative Solution:
Renting out part of your home could be an option. Alternatively
you could rent out the entire house and buy a smaller house
to live in.
Pros: If local
property values are on the rise it might pay to not sell your
home right now. By renting your home out you might gain some
tax benefits and be able to claim rental expenses.
Cons: Becoming
a landlord takes some work and can have its problems. You
will need to find good tenants and keep the property in good
renting order. You may need to consult a tax advisor, carry
liability insurance and you will be required to keep good
financial records for the property.
REASONS
FOR SELLING A HOME #5:
Escalating
costs of keeping your current home.
Alternative Solution:
Again renting out part of your home could be an option. You
could buy another house in a less expensive area.
Pros: If the property
market is on the way up, your home might be worth holding
on to as a longer-term investment. This is especially so if
you are considering buying in a lower-priced neighborhood.
By not selling you'll also save on real estate costs.
Cons: You will
need to be in a position to carry another home loan as well
as your current mortgage. Also, by waiting to sell, you may
be disadvantaged when the real estate market and prices level
off.
REASONS
FOR SELLING A HOME #6:
Change
in your circumstances.
Alternative Solution:
If you are experiencing major life changes you could consider
selling your home at a later date.
Pros: Sudden illness,
a family bereavement, or marriage breakup is stressful and
can trigger a rethink in your position. Rather than be rushed
into selling your home, it may be make more sense financially
to hold-off selling right now. This is especially true if
the real estate market is depressed. A marriage breakup could
require you to refinance to pay off your partner's share of
the equity in the property.
Cons: If the real
estate market is buoyant and near its peak, a delay may cost
you dearly especially if there is a sudden downturn.
When selling a
property, being in a state of indecision can be very frustrating
and can cause needless stress. Not making a decision, or making
the wrong decision, also has its downside. Think carefully
about your reason for selling your home - think about the
alternatives - then consider the pros and cons before you
rush in and put your house on the market. And remember; regardless
of your reason for wanting to sell your home, it usually pays
to talk your ideas through with a financial advisor.
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