Should I sell in this current market?

Question

I live in the Charlotte NC downtown area and am staring down a $240k return. However I own the home for cheap and won’t be able to buy anywhere near the current area I live in.

Does it make sense to keep based on emotion or sell and diversify the return back into real estate?

Any feedback would be greatly appreciated!

Colleen Goldstein · Answer

@Greg Powell Hey Greg, assuming you're interested in selling your primary I would say it is a wonderful time to do so. That being said, it really only makes sense if you plan on downsizing for the time being and maybe look forward to re entering assuming the market cools down in the next few years. The benefits of selling now are obviously the appreciation and on your primary capital gains free money. For investing, you're somewhat limited in inventory options to invest at the moment but could turn that lump sum into several properties to cash flow for you (maybe even a downpayment on a commercial loan to go bigger). Personally, I would sell but I am also not attached to our primary. If it was a particularly special property - location, parking, etc. and you plan to move back because you like it later - that would likely skew me the opposite direction. Hope this helps, and wish you all the best!

Dutch Langley · Answer

Depends on your abilities and goals.  Do you love where you live?  You are correct...it would be tough to buy anything that isn't already fixed up in the downtown area of Charlotte.  If you want to have your real estate make money for you...totally different choice...then sell, buy something further out that is cheaper for you and use the balance to buy and flip another one or buy a few rentals.