| Topic: | Re:Re:Re:Re:Re:Re:To Sell or To Let in this economy? | |
| Posted by: | Elliot Yarrow | |
| Date/Time: | 07/01/09 11:46:00 |
| I would sell... put the money on deposit. For a house at 595,000 at July 2007 top, you have 3 estimated scenarios:- 1) Sell now, at 450,000 Year 1 loss of purchasing power with inflation at 5% - 29,750 Year 2 loss of purchasing power with inflation at 3& - 17,850 Maintainence cost ~ 5k Equivalent purchasing power today of 402,395 2) Do not sell for 2 years, and sell at 595,000 Year 1 loss of purchasing power with inflation at 5% - 29,750 Year 2 loss of purchasing power with inflation at 3% - 17,850 Maintenance over 2 years ~5k Equivalent purhasing power today of 542,400 3)Sell today at 450,000 place capital on deposit Year 1 interst at 6% - 27,000 Year 2 interest at 6% - 28,620 So after two years capital value is 505,620 In conclusion if your unhappy with the risk of a further large drop in property, then it would be wise to get out. As things get worse cash will be king! |