Stay or Go? Risk or Reward?
If the coronavirus brought anything, it brought change. People have changed how they work, how they interact with others, and many have changed priorities. We have said it several times in the last couple of months, people are changing their values and they are also valuing home ownership even more.
Home owners in major cities are thinking about moving due to higher taxes, higher restrictions during the pandemic, higher infection rates, and the ability to work from home. Many people support the protests but the rioting and civil unrest make them feel very uneasy. Families want a slower pace of life, less population density, more land, just a new way of life.
Since the pandemic, we have also heard the flip side. We have talked to people who have moved away from Southern California and want to get back to the area. Families who live in an area with cold winters look forward to vacationing in the winter in Southern California. They have experienced changing seasons, humidity, snow, mosquitos, ticks, or being far from friends and family, and learned that they love Southern California and want to come back.
How can families consider a major move with the least amount of risk? One thing is for certain, we would NOT recommend selling or buying without living at least one year in a new area. Experience every season in a new area to see if your Southern Californian blood will adapt to all the changes. People often move with a fantasy vision of a new area and learn realties they never anticipated.
Another thing we have seen time and time, again, is when people move away from Southern California, they are so excited to learn how much more home they can buy for much less money. Yes, that is definitely one of the advantages of moving out of Southern California. At first glimpse, it’s awesome. Buyers get a huge home, much more land, and a small price tag. Sadly, most people who sell and move out of the area have a difficult time moving back if they have changed their mind and want to return. Usually, the value of homes out of the area do not appreciate as fast as Southern California, making it difficult to return.
We have a solution! Lease your home for 1 year and rent in the area you would like live. More than likely, a renter will cover the costs of your mortgage AND the rent of your new place will be much less than your current mortgage. Take the time to learn the new area, find neighborhoods that would be perfect for your new vision, check out local hot spots, and dive into the lifestyle of the area. Ideally, you’ll be able to save money as you test out the new location.
After a year, if you are certain you want to move, tell your tenants it’s time move, prepare your home for sale, and sell your California property. If you learn that you can’t live without the Southern California weather, culture, and vibe, give your renters notice to move out and come back to sunny California. No loss and everything to gain in either situation.
Many people are concerned about working with tenants and managing their home from a distance. They question how they will screen tenants, handle maintenance calls, deal with late night/weekend emergencies, or collect rent. We’ve got it covered. We are a full service real estate agency which includes property management with 5 full time employees. We are dedicated to managing or selling your property. If at the end of 12 months, you decide to permanently move, we will give your tenants notice to move out, return any security deposit to the tenants, prepare your home for sale, and sell it. If you decided there is no place like California, we will give your tenants notice to move out and in no time, you will be back.
If you’re ready for a new adventure but do not want the risk of making a decision you may regret, there are many options to consider to help you make the best decision. Give Steve a call at 310-529-6456 to discuss your options.