You have heard the story a hundred times. A couple purchased a modest home in Sonoma County. The home was a new tract home they purchased for $245,000. After living there 7 years, the home’s current market value is $730,000. From time to time they thought of selling and enjoying a capital gain of roughly $400,000 tax free. But they have to live somewhere. A similar home across town is available for $730,000. There is no benefit to selling and buying a similarly priced home.
You’ve read countless articles concerning real estate investing. The message is always the same. “Buy Low, Sell High”. This article should appeal to you if you are an empty nester, in your late 40’s to early 70’s. Maybe it has never occurred to you that there is life outside of California.
What if you could sell your highly inflated home for $650,000 and move to another part of the country. In Texas, Florida, Oregon, Washington, Nevada, Tennessee or many other prosperous states where you can buy a home almost twice as large as your present home and pay cash for it. Not only that… but you could put an extra couple hundred thousand dollars (or more) in the bank to invest in CD’s or stocks and bonds. Imagine life without a mortgage payment and an extra $250,000 in the bank.
If you are a property investor, imagine an income property that actually creates “POSITIVE CASH FLOW”. That’s just a dream here in Sonoma County.
The story of Ed & Rita
Let me tell you the story of Ed and Rita. They have lived in Santa Rosa for years. They are in their late 50’s and thinking about retirement. Their daughter and son in law had moved to Texas to pursue a new job. There was no longer anything to keep Ed & Rita in California. They wanted to be close to their daughter and grandkids. They placed their home on the market and a buyer emerged quickly. Their numbers were almost exactly as above. They had over $450,000 cash from the sale of their Santa Rosa residence. They went to Texas and looked at a couple of dozen homes. The home they selected was purchased at a price of approximately $275,000. They paid cash and put $175,000 of their cash in short term CD’s.
Their New Home
Ed & Rita’s new home has 5 bedrooms, three living areas, three and a half baths and a three car garage. It was three years old at the time of their purchase. Their new home has over 3,000 square feet and the lot sits on the side of a creek which is surrounded by beautiful trees.
Ed & Rita love their new home. They enjoy their new city, and love being close to their family. But what they love more than anything else, is the total release from the pressure of worrying about the value of their home in Santa Rosa declining, and possibly losing all of the equity that they have gained from several years of a rapidly inflating real estate market. Their new home in Texas is paid for. It is a far more beautiful and luxurious home than they ever imagined owning. Were their new home located in Santa Rosa in a similar location it would be valued at over two million dollars. They Sold High & Bought Low.
Epilogue
Ed & Rita are Texans now. They love living in Texas. Sure, it’s a little hotter in the summer and a little colder in the winter. But, regardless of what happens with home values, their home is paid for. They’ll never have to worry about the possibility of a “real estate bust”. They are off the treadmill!
What about you?
Now that you are aware that you can move to a more stable part of the country, a place where $275,000 will buy you a fabulous home, what are you going to do? You can own your home free and clear and put the balance of your equity in safe liquid investments.
Imagine owning your home free and clear and having $175,000 or more, in your bank account. Wow!
There is a whole new lifestyle waiting for you, one that is much less stressful.
If you would like to explore your own possibilities, please call me at (707) 480-8000 or email ron@WineCountryEstates.com to set an appointment to review the opportunities that are available to you as a homeowner or investor.
PS: ask me about the Lake Conroe, Montgomery, Texas investment home, I purchased with only 20% down payment that would bring in $350.00 a month cash flow, if I wanted to rent it.
Would you like to know how much equity you have? Go to http://www.SonomaCountyPropertyValues.com . Check your numbers… It’s FREE.
