SUSANA TUYA

  • Home
  • About
  • Blog
  • Contact
  • Property Matchmaking
  • Home
  • About
  • Blog
  • Contact
  • Property Matchmaking
Picture
​​P R O P E R T Y  

A N D ​

L I F E S T Y L E ​
"I get excited every time I find a new property gem that needs to be matched with its rightful new owner"
JOIN MY VIP COMMUNITY

How Buyers Can Win By Downsizing to a New Home Today?

1/7/2021

0 Comments

 
Picture
Apartment living and off-the-plan properties are extremely popular with downsizers and interstate relocators.

​Home values have been increasing for 93 consecutive months,. If you’re a homeowner, particularly one looking to downsize your living space, that’s great news, as you’ve likely built significant equity in your home.

Here’s some more good news: mortgage rates are expected to remain low throughout 2020 at an average of 3.8% for a 30-year fixed-rate loan.
The combination of leveraging your growing equity and capitalizing on low rates could make a big difference in your housing plans this year.

How to Use Your Home Equity

For move-up buyers, the typical pattern for building financial stability and wealth through homeownership works this way: you buy a house and gain equity over several years of mortgage payments and price appreciation.
You then take that equity from the sale of your house to make a down payment on your next home and repeat the process.

For homeowners ready to downsize, home equity can work in a slightly different way.
What you choose to do depends in part upon your goals.

Some, the desire to downsize may be related to retirement plans or children aging out of the home. Others may be choosing to live in a smaller home to save money or simplify their lifestyle in a space that’s easier to clean and declutter. The reasons can vary greatly and by generation.

Those who choose to put their equity toward a new home have the opportunity to make a substantial down payment or maybe even to buy their next home in cash. This is incredibly valuable if your goal is to have a minimal mortgage payment or none at all.

A local real estate professional can help you evaluate your equity and how to use it wisely. If you’re planning to downsize, keep in mind that home prices are anticipated to continue rising in 2020, which could influence your choices.

The Impact of Low Mortgage Rates

Low mortgage rates can offset price hikes, so locking in while rates are low will be key. For many downsizing homeowners, a loan with a shorter term is ideal, so the balance can be reduced more quickly.

Interest rates on 10, 15, and 20-year loans are lower than the rates on a 30-year fixed-rate loan. If you’re downsizing your housing costs, you may prefer a shorter-term loan to pay off your home faster. This way, you can save thousands in interest payments over time.

Bottom Line

Apartment living and off-the-plan properties are extremely popular with downsizers and interstate relocators.

If you’re planning a transition into a smaller home, the twin trends of low mortgage rates and rising home equity can kickstart or boost your plans, especially if you’re anticipating retirement soon or just want to live in a smaller home that’s easier to maintain.

Let’s get together today to explore your options.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    Welcome to my blog.  I am the CEO and  Head Property Matchmaker for 
    Developments Direct in
    Queensland..


    It is a pleasure to have you here!

    ​Myself and my team are genuinely passionate about creating homeownership a hassle-free reality. 


    ​Whether you are a 1st-homeowner, Relocator, Rightsizer, Downsizer and or Investor, we offer personalised services to suit your needs and lifestyle.

    No need to go through the old ways of real estate, chat to different agents or owners and wondering who to trust. 


    When you appoint us we do not work for the seller we work for YOU! 
    ​
    Let's have a friendly no-obligation chat and see how we can help you with your home-ownership goals!
    ​
    ​

    BUYERS AGENCY

    Archives

    September 2021
    July 2021
    June 2021
    April 2021
    February 2021
    January 2021

    Categories

    All
    Buyers Coaching
    Buyers Services
    Love Your Home
    Meet Susana
    Property Eye
    Videos

    RSS Feed

    Join MY VIP COMMUNITY

sign up
SITE
Home
About
Contact
SOCIAL