St Petersburg Short Sales | How much money have you lost by waiting?

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St Petersburg Short Sales |  How much money have you lost by waiting?

St Petersburg Short Sales started years ago. In 2006 the real estate market started to lose its momentum here in St Petersburg,  Florida. Many people did not see it and it wasn’t until the end 2007 that the word got out.

People who bought their St Petersburg property in 06 and 07 paid top dollar for it. If you are one of them, chances are that you’re upside down on the value, meaning to own more than the home or condo here in St Petersburg will sell for right now.

There are a lot of investment properties like vacation homes and condos in St Petersburg and most buyers typical paid 20 down and had 80% financing.  Back then, it all made sense, If you bought a condo on the beach in St Petersburg with a 7 day rental policy for let’s say $400,000 and you had a down payment of 80%  and an interest rate of 6% you yearly mortgage payment was $19200.

That is about the same amount you would get in rental income. Ok you still had to pay the taxes and monthly maintenance fees , altogether maybe another $10,000 but if you  came to Florida 4 times a year and stayed for a week at the time this would save you about $6000 in moneys you did not have to spent  in renting.

That leaves us with $4000 per year that this condo was actually costing you. Something you could easily afford and in fact you were thinking of making a ton of money when you sell your St Petersburg property in 4 or 5 years after the purchase.

At this time we had a 10% appreciation in some cases even more. So, you would have pretty much made about $36,000 per year by owning this St Petersburg condo. Hey, even if the appreciation would go down to 5% you would have still made $16,000 per year with your St Petersburg home or condo.

Everybody knew that the market would eventually slow down; nobody realized that it would completely crash and property values would decrease faster than they had increased.

So, here is our question again, how much money have you lost by waiting?

Maybe you should have considered a Short Sale here in St Petersburg  two or three years ago. Every body’s situation is different but maybe it is time for you to consider a Short Sale on your St Petersburg condo.

Short Sale is a scary word and there is a lot of misinformation floating around. If you are thinking about buying or selling a Short Sale or just want to know what a Short Sale really is, give us a call today 727 410 7777 and we can talk about your options.

St Petersburg Short Sales |  How much money have you lost by waiting?

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