The hidden perils of a price rise
Posted on October 8, 2009 by Colin Wong Areinz (Waitakere Real Estate Mreinz REAA 2008)
Remember that if the value of your house rises, so will the value of the one you want to buy. It’s worth noting that if you sell now for $400,000 and buy for $500,000, that’s a $100,000 shortfall to fund. If prices rise say 20%, then you sell for $480,000 but buy for $600,000, the shortfall now being $120,000 to move to the same house you could have for $20,000 less. Worth thinking about.
Filed under: REAL ESTATE