When we’re feeling the financial pinch, we turn to desperate ways to make a quick buck. Whether it’s a good idea or not for you in the long run, only you can decide, but selling your nest egg at this moment in time can be a very lucrative answer to your short-term money problems. Let’s have a look in more detail.
The rates at the moment are pretty low, around the 4% to be precise, and this is the lowest that they have been for quite some time. This only applies to 30-year mortgages though, but as 30-year mortgages are the most popular type, this is more than suitable for the vast majority of sellers. The rates are slowly creeping back up again, but it is a good opportunity in the meantime for sellers. Low mortgage rates mean a lower monthly payment for potential buyers. It’s best to speak to a property management firm to get the best advice on how best to sell your home, but the low rates mean that if you need that quick cash injection, now is a good time.
Another reason to sell off your nest egg is that there is less competition right now in the market so as far as a potential quick sell is concerned, you can very easily take advantage of this. So if you’re in the position to take up early retirement or you need to make a big move, you could do this in the short space of a few months. While the market has less competition as far as sellers are concerned, there is a massive slew of people who are looking to set up home permanently. The unemployment rates in certain areas are slowly going down, and as a result, people are looking to place their funds in something tangible. Take advantage of it!
Of course, the market is now balancing out, so you’ve got to strike while the iron is hot. Although a few years ago it would have been foolish to sell your home, especially after the market crash in 2008, but enough time has passed since then. This doesn’t mean that people will grab the first home they see purely as a means to hang onto some equity. But as homes are being snapped up right now, it would be advisable to keep your home in mint condition should it get bought up quickly. It is a dilemma for many people to sell their home that they’ve spent years building up and making their own domain so you could join the buy-to-let club. But this does mean being a landlord and making sure your home is well-maintained, which requires a semblance of trust.
Selling your nest egg is a big move, but for a sharp injection of cash, for most people, it’s the only option they have. If you are looking to make a big change in your life, it makes a lot of sense. And based on the above options, there is an opportunity in the market to get off the property ladder!