Million Dollar Home Owners Have Other Choices

September 8, 2008 · Lee Ginsburg

Million Dollar Homeowners Have More Choices.

I was out to dinner the other night and both couples living in million dollar plus neighborhoods were speaking about homes in their area priced high but never sold. Instead the sellers rented them for big bucks.

Million Dollar homes have not been severely affected by depreciating values. Why?? You might ask. They do not have to sell. That is why!!! Quite a few people sell because they are relocating or are having trouble making the payments. Either way million dollar home owners often have the income or savings to maintain the payments even if they have to relocate. They are in desirable areas and could demand rent that will make their mortgage payments. They might have family members whom can help them. In 2007 these homes maintained and even increased in value. This year they are certainly slowing down. You know the Real Estate Mantra of Location, Location, Location. These million dollar plus homes are valued that way because they have location, location, location and are always in demand.

In lower valued areas if people have to move and want to buy another home they do not have the down payment necessary to purchase another home without selling. The upper end does. The million dollar homeowner purchased with a strong down payment probably from the sale of a previous home. The under million dollar home owner probably was a first time home buyer and had a minimum down payment. Million dollar home owners are more experienced and understood the loans they were agreeing to.

In time the under million dollar homeowners will become the million dollar plus homeowners and will reap the same benefits.

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