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 June 2008  "When You Think of Real Estate, Think of Me" |
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Huntsville Madison County Market Conditions
Why Buying a home in most markets is always a Wise Decision
• According to famed money manager Peter Lynch, one’s first investment, even above purchasing stocks, should be to buy a home. In his view, an owner-occupied home is nearly always profitable, even in a declining market.
• Interest rates are low, making it the ideal time for buyers to make a move. As the economy and real estate market recover, home prices and mortgage rates will rise making homes less affordable.
Some of the points the author Dan Kadlec makes are worthy of sharing: • Trying to time real estate might not pay off. Kadlec uses a great example: If you buy a home today for $218,900 with 20 percent down and a 5.5 percent 30-year fixed-rate mortgage, your monthly principal and interest will be $994.31. If you wait a year and purchase the house for less – $197,010 – but have to pay a 6 percent mortgage rate, your monthly payment would be $994.94. In the end, you would have saved nothing and wasted a year “living someplace you would rather not be.”
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