| It's nothing new among self made millionaires, and | | | | the home of their dreams has alsodeclined in |
| independentlywealthy individuals who have | | | | value. Using the same percentage of decline, |
| accumulated wealth through their ownmeans, to go | | | | 30%,indicates that the move up home, is now worth |
| against the common trend in society. As a matter | | | | $280,000. |
| of factmost millionaires are made during a recession. | | | | The critical point here is that the difference in cash or |
| Our current real estate market in Michigan provides | | | | mortgage debtrequired to accomplish this move has |
| such opportunitiesthat are being overlooked by many | | | | been reduced from $150,000 to |
| due to the emotional and financialpain associated with | | | | $105,000! Financially, it is far easier for this couple |
| the decrease in value of their own homes. For | | | | to afford thehome of their dreams in the Michigan's |
| thepast 20 years when home values were | | | | current market than it was fiveyears ago, even |
| consistently appreciating everyyear, we all felt good | | | | when the loss in value on their current home |
| about the market and homeowners wouldn't | | | | isfactored in. |
| thinktwice about selling their home for a gain and buy | | | | If you are able to look beyond the current situation |
| a larger moreexpensive home. | | | | and seeopportunities which are overlooked by the |
| But consider this example. Lets turn back the | | | | majority, there is window ofopportunity that you |
| clock five years andlook at an average couple living in | | | | may never see again. When most of the public |
| their first home having a value of | | | | isbuying, there is a small group of individuals that are |
| $250,000. As their family grows, they need a | | | | selling. Whenthe masses are selling in desperation |
| larger home to accomodatetheir lifestyle. Usually | | | | and feeling like the sky isfalling, there is an elite group |
| they would move up to a home of approximately | | | | that is buying and taking advantage ofthe |
| $400,000. In order to do so, they would have to | | | | opportunity. Accept the loss on your current |
| invest an additional | | | | home, because all youare doing is moving equity from |
| $150,000 in the form of a larger down payment and | | | | one home to the next. |
| a larger mortgage. | | | | Eventually the market will turn around, and what you |
| Now I want to fast forward to the market we face | | | | really should bethinking about is where do you want |
| today. That samefamily's existing home has | | | | to wait for the market to turnaround, in your current |
| declined in value from three years ago | | | | home or the home of your dream? You'll |
| byapproximately 30% to $175,000. Emotionally, that | | | | bewaiting somewhere, why not wait in the home |
| is a HUGE hit! Buthold on, the new bigger home, | | | | you really want to be in? |