"Buy a House... Then Buy Another"

By
Real Estate Agent with RE/MAX Results St Cloud Mn real estate

Fat cat"Buy a House... Then Buy Another". Today's home prices are on a par with about 2004 in St. Cloud MN, but the home affordability is probably more like 1996 according to Chris Mayer of Daily Reckoning. Adjusted for inflation he suggests today's affordability is 30% lower than 1996.

Put simply, affordability is the price you pay per month, not the gross sale price. It's how your paycheck is impacted by owning the home, and the mortgage that usually comes with it! The quote was originally attributed to Adam Smith on the Dick Cavett Show in 1971, but it's good advise today, being repeated by some of the best in the investment business, like John Paulson (a hedge fund manager; he made 2.5 billion personally betting against the sub-prime lending market) who called the housing bust in '07.

Paulson advises to buy a home, and if you already own one, to buy one or two more. He's right of course. All of the people that go through foreclosure have to rent from someone!

Years ago some friends got divorced, and the husband moved out and bought a duplex, using the services of yours truly. "George" used his VA eligibility to finance, and it was such a good deal, he asked if he could do it again! He ended up buying a new property every 2-3 years, owner occupying each in turn, and alternating between FHA and VA. Always complying with Owner Occupancy Affidavits which required a period of owner occupancy. "George" retired at 55.

Today's market reports from NAR and Credit Suisse and Wells Fargo will all tell you that the largest Buyer Sector today is the Investor.

LookPeople with money are buying homes and making money. I can help you do it too!

Call Me it is easier than you think!Where else would they invest? Stocks? Bonds? Money Market Funds? The prices are at or near the bottom and interest rates are near the lowest they have ever been, and have begun to climb, but you can still get a 30 year mortgage at a little under 5%. The cost of owning a home is lower than maybe 20 years ago.

Now is the time to buy and grow your personal wealth!

Posted by

Steve Baklaich RE/MAX Results  www.stcloudareahomesforsale.com 

Cell:320-260-3290 Saint Cloud Minnesota Real EstateQR code to Google Places Page

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If you are relocating to central Minnesota check out all the wonderful reasons to love St Cloud. It is a wonderful area full of things to do and lots of great houses. I would welcome the opportunity to help you find your perfect place here. Visit my St Cloud real estate website for more information about buying or selling a home, or property in the central Minnesota real estate market.

 

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Rainer
372,583
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Steve ~  This is wonderful information; thank you so much for sharing it today.  I am really trying to get a couple "jump-started", and this may be just the ticket; thanks!

Jan 15, 2011 06:45 AM #1
Rainmaker
159,353
Suzanne Taylor
Ultima Real Estate - Corpus Christi - Corpus Christi, TX
Home Sales In Corpus Christi, TX

Steve, thanks for an informative post.  I am personally trying to take this advice, it's a great time to buy.

Jan 15, 2011 06:55 AM #2
Rainer
114,649
Cinnamon Wright
Wilmington Real Estate 4U 910.547.1446 - Wrightsville Beach, NC
Assistant to Tish Lloyd

Great advice -- if only more would heed it! 

Jan 15, 2011 11:10 AM #3
Rainmaker
187,856
Steve Baklaich
RE/MAX Results St Cloud Mn real estate - Saint Cloud, MN
Treating Buyers & Sellers to Full Service Always.

Tish; Anytime I can site smarter, more authoritative people, I think it helps. Especially when there points are so well thought out.

Suzanne: We are thinking the same thing and looking for that sweet deal that will help us grow wealth.

Cinnamon; We are seeing more activity as people come around and values flatten out. Interest reates stirring have had an effect also. Could be a good year:)

Jan 15, 2011 03:18 PM #4
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Rainmaker
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Steve Baklaich

Treating Buyers & Sellers to Full Service Always.
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