I’m noticing something in the Real Estate market that I want to share with you. If you have purchased your home in 2012 or before, there is a huge opportunity for you RIGHT NOW! If you wait, you will still be ok, but you will have to wait out another Real Estate Cycle. We don’t know how long the next cycle will take to hit, but this one is on its way.
Here is Janet and Rick’s story:
Janet and Rick contacted me in 2011 through one of my past clients, wanting to buy her first home. They had been renting in Santa Monica for many years and decided that they were ready now. It was nearing the end of the year and the market had slowed down for sellers.
They had specific location requirements and were flexible with the size of their home, but wanted to stay in the mid $700’s range. In Dec 2011, we came across a house that had been on the market for almost 6 months and while it started out at a list price of $1,100,000, it had gradually been reduced every month until it was priced at $765,000. We just received the notification of the price reduction on Dec 8, 2011. We quickly set up a showing appointment. The house was painted a rainbow of colours and needed some work, but it was OVER 3000 SQUARE FEET in size! It was a tremendous opportunity and we jumped on it right away. By Dec 13, we had the house in escrow. We won out over other buyers as we moved quickly and we were able to purchase the home for asking price of $765,000.
About 1 year after they moved in, they called to tell me that they had their home appraised and it was now worth 1 MILLION DOLLARS! Yes, within 1 year, the house gained 30% in value!
Fast forward 5 years, and Janet and Rick are thinking of a change. I ran some comparable properties for their home and guess what? Their home is now worth about $1.3 Million!
You know what else? They will be able to make up to $500,000 in profit TAX FREE due to capital gains exemptions*!
Guess what? Once we sell their house, they will have many options to choose from…one of which is to take that trip around the world for 6 months that they always wanted to do!
What are you dreams and aspirations? How can I help you realize them? Click here to set up a time to chat and let’s figure it out together!
Talk soon!
Revi
*Please check with your tax professional. This is not intended to be Tax advice.
