SteveR
Moderator Emeritus
- Joined
- Jul 1, 2005
- Messages
- 2,811
I think it all depends on what you do with the equity from the sale. If you invest it in fixed income instruments you will have a sure gain of 5+ percent over the next 5 or so years. Weigh this against the for sure (crystal ball 100% accuracy) loss over in potential equity over the same time period. Selling and moving costs may not exceed your potential losses over this time period.
Do the math. How much would you really lose if you sold at the bottom vs how much would you really make if you sold, moved and rented while investing whatever you were left over after all these expenses? If the math works for you (don't assume a stock market gain unless your crystal ball is tuned to this also and if it is...sell everything and buy into the market), then go for it. If not, then it is only a loss when you actually sell later on. By the time you really want to sell the market might swing back up and your potential loss could be zero vs what you would have lost by selling and moving.
The only right answer is the one that works for your situation and your tolerance for risk.
Do the math. How much would you really lose if you sold at the bottom vs how much would you really make if you sold, moved and rented while investing whatever you were left over after all these expenses? If the math works for you (don't assume a stock market gain unless your crystal ball is tuned to this also and if it is...sell everything and buy into the market), then go for it. If not, then it is only a loss when you actually sell later on. By the time you really want to sell the market might swing back up and your potential loss could be zero vs what you would have lost by selling and moving.
The only right answer is the one that works for your situation and your tolerance for risk.