My New Blog

How long should I keep my house

March 12th, 2023 10:37 AM by Sam Kader MLO130505

Some things get more valuable with age like fine wines and real estate. The longer you keep them the more valuable they get. In real estate, homeowners should stay put for at least five (5) years before selling their property or risk loosing money. The reason for this 5

year rule is that closing costs and real estate commissions required to buy and sell will consume between 7% to 10% of the cost of the house. Because real estate usually appreciates slowly, the longer you keep the house the more money you stand to make. As a general rule, 2 percent per year market appreciation is normal and 3 to 4 percent is a hot market. We are lucky in Seattle where market appreciation has been double digits. The average closing costs range from 2% to 5% of the cost of the house. Selling a house is often more expensive than buying one. The real estate commission alone can suck up 4% to 6% of the home's sale price.

Should you need to move within the first 5 years of buying your house, consider renting it out. Generally, rental income is sufficient to cover for your mortgage payment. If your homes are in vacation worthy locations like on the beach or near popular tourist attractions, you can also rent it out via platforms such as Airbnb or bookings. However, you should know local laws governing these kinds of rental.

If you don't plan to on being in the house for more than five years, then you should seriously consider renting.

Posted in:first time home buyers, closing costs, and tagged: first time home buyers closing costs

Posted by Sam Kader MLO130505 on March 12th, 2023 10:37 AM

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How long should I keep my house

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