Great Deal Alert
Hey Guys, Recently I have noticed a bit of a trend with my clients who I am helping to purchase a new home that I want to share with you. They are buying their new home without selling their old home. Of course some folks can’t afford to do that. But if there is any way for one to do so, I strongly recommend it. For one thing, given the interest rates pre-2022, you can quite often rent the old house for more than what your monthly payments are. But even if you are able to only rent it for just enough to cover the monthly payments, it’s still a good idea.
Now you own not just one piece of real estate; you own two. More than any asset I can think of, owning more real estate lays the groundwork for increased wealth, and in so many different ways. For one thing, just having it sit there and do nothing, the asset is adding in value approximately 5% per year cumulatively, on average. In the past decade in Southern California, real estate has actually increased in value way more than that, but 5% per annum is safe. For another, you can frequently build an ADU (Accessory Dwelling Unit) on the property, and fairly inexpensively at that. Usually this will dramatically increase the amount of income your property is generating. There is also a State Ordinance called SB 9 which, in many cases, allows one to split the lot where the house is located, build a whole other house on what is now a separate lot, and sell it independent of the original lot!
With someone knowledgeable in your corner (such as myself ) you can learn lots of ways to do stuff that works out great for you and your family. It’s even a great ‘fallback’ just in case life takes a bad turn – as can sometimes happen – and one finds they can no longer easily afford to live in the new more expensive house they bought – they can always go back to the original house they never sold! Bottom line, if you are thinking of buying a new house, give me a call and let’s together look at all the options that will work best for you. –
Ken Shapiro
Broker/Owner
Silverwood Properties
818-237-6963
