Quote:
Originally Posted by Cowboy89
From the sounds of it you seem to have doubts about prices holding up long term and are looking for reasons why a decline might be delayed. If I were you and were satisfied with the paper gains on your property as it stands today I would sell and redeploy those funds away from Real Estate (EDIT: Corrected, If all you do is buy a new property), then you're just as exposed to a potential RE slide as before the sale). A good way to emotionally justify whether it's time to sell would be to think of yourself on the buying end of your property. Would you re-buy your property again at the price you're looking to sell it for? If not then it might suggest a value differential between the market and intrinsic value and thus 'Greater Fool' theory applies and you should get out while you can.
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The thing is, as it sits, it hasn't done all that well. It's been a relatively short term hold, and one more year of mortgage payments paying down the principle puts it in a decent spot. Before that, and with a huge penalty if it gets sold earlier, it doesn't look so good.
I guess I have to decide if I think the odds are good of the value of the property dropping more than the penalty ($9-$10K) plus the amount of principle that will be paid off ($6K).
The money would go straight into other investments. I've got a crapload of unused RRSP room right now.