Sure, it’s Relative – but be smart.

Sometimes people forget that when you are buying AND selling Real Estate – what you buy and sell for is all relative. For example, if you SELL for a lot of money, you’re also likely turning around and BUYING for a lot of money. On the contrary if you sell for LESS than you would have like, well – you’re likely going to buy for less than you would otherwise as well (that’s good).

So what’s the overall difference? Should people just NOT CARE about upsizing or downsizing and live their best lives in any house they want?

No – of course not.

What you SHOULD be doing as looking at the complete financial picture after all cash inflows, outflows and taxes are taken into account.

Here’s what I mean:

• is the sale of your property going to be subject to income or capital gains tax? If so, how much?
• What will your total payments look like? Mortgage, Property Taxes and Insurance?
• What about utility or maintenance costs/fees? Are those much higher or lower?

What is your bank account and cash flow going to look like?

The other aspect to consider is what is your LIFE going to look like?

Will you be much happier? Be busy with repairs or have more free time? Doing what you love or hate??

All of those matter a great deal.

When you look at the picture ENTIRELY like this, you can sometimes see that buying or selling Real Estate can either make total sense or no sense where you may not have thought otherwise before.