I want to share with you some business thoughts on whether this is a good time to buy or continue renting. First you must understand how basing your investment decisions on short-term results are detrimental to your long-term financial health. Let me explain:
In South Torrance property values have doubled 5 times since 1970!
- Do you believe that prices will be higher in 7-10 years? I do. Historically speaking, it is a known fact that properties values have gone up... and up... and up over time. Take a moment to think about how much a home cost when you were a child. Or how much your grandparents paid for a home.
- Let's assume you purchase a home for $700,000 today. We can assume in 10 years it will be worth $900,000. That's a $200,000 profit. If your down payment is 10% ($70,000) and then you turn a profit of $200,000 in 10 years....that's 285%, not bad! I can show you how much properties in a given area have appreciated over the years.
- Mortgage interest rates have gone down. Today, a 30year fixed rate is at 6.500%. Will interest rates go up or down? It doesn't matter to you! If they go up, you are OK, if they go down, just refinance. Win-Win for you! You can also request that the seller buy down your interest rate, thereby saving you far more money.
- Can you afford the cash flow to pay a mortgage rather than rent? I can show you what the costs, tax savings, and assumed profits would be over 10 years on a "rent versus buy" analysis. I can also show you some great ways to make your money work for you.
- Your negotiation position has never been stronger than it is today. It's a buyers market - take advantage of it. Why wait until the market changes from buyers to sellers?
- What is a "good deal"? I think saving 50% on largest purchase of my life is a great deal! Don't you?
- Enjoy your own home now and all the long-term benefits that come with it!
Just email me to set up a time where I can prepare the "rent versus buy" analysis for you. Thanks.
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