The five-year rule isn’t a real rule. Today I’m explaining why.
You may have heard of the five-year rule of homeownership, but today I want to challenge that. I would say there is no rule for how long you need to own your home before you sell it. There could be situations in which you buy the house assuming you’ll live there for a certain amount of time, but things in your life can change.
This week I was speaking with some clients who wanted to do a few renovations but were told by another real estate agent that if they did so, they would need to live in the home for five to 10 years. In reality, with the money they were going to spend on renovations, they could turn around and sell the house the next day. They probably wouldn’t make any money from the sale, but it wouldn’t cost them to sell it.
You need to know what your property is truly worth before making decisions about how many years to stay there. If you want to move and you can make money from the sale, get your equity out, not lose money, or whatever your criteria are, it’s okay to move. You don’t need to stay for years. However, if you want to stay, make sure you know the home’s value before you add additions or do renovations.
Goals, jobs, and families change; don’t be afraid to make your house your own. All the numbers depend on your neighborhood, the time of year, the current market, and more. However, right now, there is no true five-year rule. Some people buy a property, move two years later, make money from the sale, and are happy with their decision.
We’re always here to answer any questions to help you make the best decisions for you and your family. Please reach out to us via phone or email if you have further questions about the five-year rule or anything else concerning real estate. We would love to help you.