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A case against waiting to purchase a home

By
Mortgage and Lending with Coastal Funding Corporation NMLS: 103035

 

If you purchased a home today for $218,900, put 20 per­cent down at 5.5 percent inter­est on a 30-year-mortgage then your payments would be $994.31.

If you purchased that same home next year, and the price dropped by 10 percent to $197,010 and had to pay 6 per­cent interest because we are coming out of a so-called-re­cession, then your payments would be $994.94.

Your payments would be nearly the same no matter which price you paid for the home. It is very likely that once our economy as a whole starts to get better then interest rates will gradually increase.

That slight increase will wash away all of the gains that one would get from waiting. In addition, waiting could cause you to lose the home of your choice.

Today, buyers have many options, yet when the market starts to go back up, those op­tions will vanish. Now is a great time to buy a property.

Everyone needs to under­stand this so they don't miss the boat. Today, there are peo­ple who are wishing they sold two years ago.

In a few years from now, there will be people wishing they had bought today. Here are three facts that buyers must consider:

1.  There is so much inven­tory to choose from. They can find what they want, where they want it.

2.  Interest rates are very low; money is cheap.

3. Prices have fallen to un­reasonable lows - good for the buyer. People say this market is bad. Think about that. It is only bad for half of the people in the market, sellers.

Two years ago, sellers were happy selling at really high prices waffle buyers were upset because they made a full price offer and the seller was hold­ing out for a bidding war.

The buyer had to pay more than full price to buy some­thing. The buyer was unhappy. Today, buyers are happy be­cause they have a lot of prop­erty to choose from.

Prices are low and interest rates are low. Buyers are finding quality properties at a discount. Sell­ers are unhappy. So, is the market really bad?

There is almost always one group of the market that is happy and one group that is unhappy, just as it was a few years ago.

*The Carolina Forest Chronicle

Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Excellent post -- thanks for making the case to purchase now, and so clearly.   Investor/buyers are already out there, right now.

Li

 

 

Jul 10, 2008 05:00 AM
Charlottesville Solutions
Charlottesville Solutions - Charlottesville, VA

That comparison is actually a very good point. Thanks!

Your friend in Charlottesville!

Jul 10, 2008 05:00 AM