Is it good time to sell Irvine property?
- Thread starter Sunnyirvine
- Start date
NEW -> Contingent Buyer Assistance Program
It absolutely does.
The world is a wash in cheap money along with negative interest rates.
What the federal reserve does absolutely will have an impact on orange county real estate. I guarantee it.
[/quote]
Ok then please explain to me why interest rates are lower today versus this time last year when the Fed Funds Rate is higher today than it was last year at this time? The Fed only controls short-term rates and those short term rates do not dictate where mortgage rates are. Mortgage rates are based off of MBS bond rates along with lender credit spreads.
[/quote]
interest rates today are lower than last year because of the impact of negative rates around the globe. simply put - other countries/banks are purchasing our bonds, thus driving down long term rates and that's impacting the mortgage rate you speak of.
and lets be real here when you come on here and spit out "the fed funds rate higher this year than last year" it went from 0 to .25 which is hardly called "higher". you know what i mean.
who said i'm a realtor?
is rent not covering the expense on the home? if so I'd understand wanting to just be rid of the home and cash out whatever equity you've had since you bought at peak
agreed on not banking on appreciation, particularly if the home is at a certain price point. i mean hell, if you bought at peak long ago.. its probably finally back near or past where its at. if you're banking on some FCB coming to pick it up, I wouldn't hold breath as I feel it has cooled somewhat in the 1.1 to 1.6 mil range for FCBs.
if your home is above the 1.2 mil mark, its getting harder for those cash buyers to even get the cash out of the country. (homes closer to 2 mil is a diff ball game though)
anyways, as other said its a personal decision. i'll run the math in diff scenarios and see where you may be at in 5 years. but as hello said - if today, at its current price you wouldn't get anywhere near this house as a rental property - then maybe its not a good idea to continue to keep it as a rental property.
Not many times where you'll find a buyer yourself and not have to pay commission to see your home. Have you and renter discussed the price of the home? I'm sure they'll want a small discount since you aren't going to be using a realtor and they'll know you'll be saving 4-5%. Find out what they are willing to pay for the home before you decide whether you want to sell or not.
i think you should do the math, after depreciation you might not be getting as much out of selling the home as you'd expect.
but yeah test the water as USCTrojan suggested and see if you can find a ballpark number? If I'm the renter and I skip out on the realtor, I'd expect some savings too.
USCTrojanCPA said:
It absolutely does.
The world is a wash in cheap money along with negative interest rates.
What the federal reserve does absolutely will have an impact on orange county real estate. I guarantee it.
[/quote]
Ok then please explain to me why interest rates are lower today versus this time last year when the Fed Funds Rate is higher today than it was last year at this time? The Fed only controls short-term rates and those short term rates do not dictate where mortgage rates are. Mortgage rates are based off of MBS bond rates along with lender credit spreads.
[/quote]
interest rates today are lower than last year because of the impact of negative rates around the globe. simply put - other countries/banks are purchasing our bonds, thus driving down long term rates and that's impacting the mortgage rate you speak of.
and lets be real here when you come on here and spit out "the fed funds rate higher this year than last year" it went from 0 to .25 which is hardly called "higher". you know what i mean.
who said i'm a realtor?
Sunnyirvine
Member
Thank you to All for offering good advise.
paperboyNC
New member
Of course you also have to make sure your renter is paying a good price.
Sunnyirvine said:
is rent not covering the expense on the home? if so I'd understand wanting to just be rid of the home and cash out whatever equity you've had since you bought at peak
agreed on not banking on appreciation, particularly if the home is at a certain price point. i mean hell, if you bought at peak long ago.. its probably finally back near or past where its at. if you're banking on some FCB coming to pick it up, I wouldn't hold breath as I feel it has cooled somewhat in the 1.1 to 1.6 mil range for FCBs.
if your home is above the 1.2 mil mark, its getting harder for those cash buyers to even get the cash out of the country. (homes closer to 2 mil is a diff ball game though)
anyways, as other said its a personal decision. i'll run the math in diff scenarios and see where you may be at in 5 years. but as hello said - if today, at its current price you wouldn't get anywhere near this house as a rental property - then maybe its not a good idea to continue to keep it as a rental property.
Sunnyirvine
Member
We bought for 740k in 2005 so it is below million mark. With our down payment and little appreciation rent is covering expenses and property taxes. No rush on getting cash out. Only reason to save commission, tax gain Etc....
usctrojancpa
Well-known member
Sunnyirvine said:
Not many times where you'll find a buyer yourself and not have to pay commission to see your home. Have you and renter discussed the price of the home? I'm sure they'll want a small discount since you aren't going to be using a realtor and they'll know you'll be saving 4-5%. Find out what they are willing to pay for the home before you decide whether you want to sell or not.
Sunnyirvine said:
i think you should do the math, after depreciation you might not be getting as much out of selling the home as you'd expect.
but yeah test the water as USCTrojan suggested and see if you can find a ballpark number? If I'm the renter and I skip out on the realtor, I'd expect some savings too.