Friday, June 22, 2018

Real Estate As An Investment

Best Investment Poll for 5th Year Running - Real Estate Tops It

Not only is real estate the #1 choice for best long-term investment – you can live in it! Cannot do that with the other investments. You can also invest in additional properties and rent them out effectively letting someone else pay the mortgage for you! Check out today’s report by clicking on the link just above.

Short of a war or stock market crash…

Worried about something catastrophic – like war or a total market meltdown? Of course, those are possibilities in our daily lives and it will not matter if you own or rent – you will be impacted! So why not own your home?

And, what happens if prices and interest rates keep climbing? If you buy now, you lock in your rate and your payment. You are ahead of the increase. Can the country sustain the higher prices and higher rates? Of course, we have before. The predictions are that we would return to the affordability norms of 1987 to 2004. What is holding you back? Call me Al.

Ready to Move Up to Your Dream Home?

If you are a regular follower, you already have read about why prices keep climbing. It is about supply and demand. There is no sign of demand slowing – or being met at this point. The expectation is that prices will continue to go up.

It you are thinking “dream home” – either as a move up or a first time buyer, now would be a good time to make the move. If you have a home and you are waiting for its value to increase so you can buy a higher priced home – while you wait, the higher priced home is going up more than yours! If you are downsizing, the math could work in your favor – provided the market stays as is.

If you are that first time buyer, waiting can cost you with a bigger mortgage payment! Alternatively, it means that you will be able to buy less house. Just take a look at our previous post about buying power or check the pages listed in the right column.

Presenting an Offer in Today’s Market

No secret that today’s market is a sellers’ market. That means when you find the home that is right for you – move quickly to make an offer. Hopefully, you are working with a real estate professional who can guide you in making an offer and negotiating the price. The best deal is a win-win for both sides. That is how dreams come true!

Wednesday, June 20, 2018

This is a picture of my father from WW2. Today is his birthday. If he was still with us, he would be 100 today!

Monday, June 18, 2018

Interest Rate Impact

Interest Rates Jumped to a 7-Year High

Yes – interest rates have moved up but so far, nothing crazy. The experts have an explanation for that and the relationship of gasoline prices to higher interest rates. Have a look at today’s report by clicking on the link just above.

How Current Interest Rates Impact Your Purchasing Power

Again, you are going to need to click through to today’s report. There is a chart showing incremental increases of ¼ of 1% and the impact that has on your buying power. Clearly, there is reason to buy while rates are still on the lower side – or risk getting less house or a higher payment.

One of the biggest mistakes is trying to save more money for a down payment while prices and interest rates are moving up. Typically, it does not work in your favor!

We have an entire page on Purchasing Power. Check it out.

As Mortgage Rates Rise, Will Home Prices Fall?

Lots of good news here. The consensus indicates a strong and healthy economy and favors robust home price appreciation. If there was a war or financial catastrophe, all predictions are off the table. But, realistically, the economic engine of the country is running just fine and increased interested rates will be assimilated.

Sunday, June 17, 2018

Saturday, June 16, 2018

Rent - or - Own

In the Majority of the US, Buying a Home Is Cheaper Than Renting

More often, we are hearing that the cost of buying is cheaper than renting in the majority of the US. In 2018, that statement holds true again. There are quite a few numbers to consider in the report linked above – and in the one that follows. Have a look and decide if the timing to buy a new home is right for you. Time to let the landlord pay his own mortgage - or find someone else to!

Have a Look at the Cost of Renting vs. Buying

Have a look at the chart. It takes more of your income to qualify for rent than it does to buy. Go back and read that again. Who would have thought?

Do You Know the Top Reasons to Own Your Home?

Why own? Well, at the end of 30 years, you have a paid investment (unless you borrow on it of course). At the end of 30 years renting – you have a stack of rent receipts and a bill due next month!

Along the way, as an owner you can essentially do what you want to do, you enjoy more freedoms, you are a broader part of the community – and you have achieved a goal. It takes a first step to begin and a fair portion of your lifetime – and worth it!