Is It the Right Time to Buy?

Reblogger Al Raymondi
Real Estate Broker/Owner with Ocean View Realty Group in Ormond By The Sea Florida BK559597

Tom Branch  of Dallas posted this positive story and we have not seen enough positive stories recently.  Timing is everything and when interest rates begin to increase and values are higher everyone will wish they bought earlier.  Now is the time to buy.

Original content by Tom Branch TX Broker 0513551

Renting Versus Buying a Home

I had lunch with the sales staff of a local builder I represent yesterday. A couple of tasty pizzas combined with an interesting conversation led to this post.

Many of the potential buyers are walking in concerned about everything they are reading, hearing, and seeing in the national media. “It’s a bad time to buy”, seems to be the news of the day.

As we sat there and ate, we jumped onto Google and looked at the rents of an apartment complex within sight of the subdivision. The rent for a 1608 square foot apartment is $1639 a month. We compared that to a brand-new 1620 square-foot townhome. The townhome is priced at $195k. An FHA mortgage with a 3.5 percent down payment results in a mortgage payment of about $1626 including principle, interest, taxes, insurance, mortgage insurance, and HOA dues.

For the same money being paid for rent, one could own a townhome. These figures do not take the tax advantages or long-term appreciation in account.

Home and interest rates are both low. It will not stay that way. Home prices in North Texas are up 3.5 percent over last year and Collin County is up 5.4 percent. Interest rates will remain where they are as long as the government continues to purchase most of the mortgage loans. They cannot continue to do so forever.

I suspect we will look back at this period in 20 years as the golden opportunity of a lifetime.

Search the North Texas MLS.

Tom Branch, Broker, CDPE, SFR
Source: http://www.thebranchteam.com/wordpress/2011/06/26/is-it-the-right-time-to-buy/

Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton.  While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure.  Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.

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The Branch Team - Texas Real Estate Broker 547597 | Team Members are Texas Licensed Real Estate Professionals
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Important Notice: The Branch Team with RE/MAX Dallas Suburbs is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

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Rainmaker
1,317,551
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

It is a very good time to buy and unfortunately, the national news is soooo overly negative!  Glad to see some positive posts.

Jun 27, 2011 03:21 PM #1
Rainmaker
82,475
Ken and Leslye Huebsch
3x Individual Agent of the Year, Luxury Homes, First-Time Buyers, Residential Resales, New Construction - Harrisburg, PA
Realtors - Harrisburg Homes for Sale 717.514.1793

Buyers must realize that if interest rates climb even 1/2%, the impact that will have on a 30 year loan. Definitely not worth "waiting for prices to drop a little more".

Jun 27, 2011 03:27 PM #2
Rainer
329,276
Donald Reich
Prudential Centennial - New Rochelle, NY

This is the best time to buy! Prices are down, interest reates are low... what more could you ask for?

Jun 27, 2011 04:12 PM #3
Rainer
7,880
Julie Keelan and Nancy Page
Keelan ~ Page Group at the Allen Tate Co - Wake Forest, NC

Is is a good time to buy? Oh you betcha!

Jun 27, 2011 04:47 PM #4
Rainmaker
1,099,076
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Thanks for all your comments, the public only reads hears the media reports that values are down and there is no reporting about the low interest rates or the great deals that are available now in most markets.  These deals and low rates will not last forever making this a really good time to buy.

Jun 28, 2011 05:12 AM #5
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Rainmaker
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Al Raymondi

Ormond By The Sea Florida - Home and Condo Sales
Come live by the beach in Ormond By The Sea Florida
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