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> locked in <3.5% are not planning on selling in the next 10 years or more Not just that but looking further out at retirement, downsizing and staying in the s
by mattbrewsbytes 4y ago
> locked in <3.5% are not planning on selling in the next 10 years or more
Not just that but looking further out at retirement, downsizing and staying in the same area is not looking possible. The house might be worth $X on paper at that point but if you sell you are then thrust into a market where everything is much higher. Its financially more palatable to just stay put even if you don't need the space. I imagine people within a couple years of this decision are staying put right now and this will keep demand up regardless of rates.
- Mochsner 4y agoIf you're downsizing, full cash or majority cash offers (if an option) would be the exception here.
- seanmcdirmid 4y agoIf you are downsizing you can cash out and then buy your next (smaller) place in cash without a loan. This all assumes you aren't in California, though, where prop 13 encourages you to stay put no matter what.
- mirashii 4y agoAlmost, except Prop 19, which allows you to transfer your property tax valuation under Prop 13 to a new property to allow people to downsize in retirement.
- seanmcdirmid 4y agoOoh, nice, I didn't know about that one. Seems like the right direction to go in.