#1 – Prices aren’t going down
The ship has, unfortunately, sailed on the great deals and foreclosures that was the market a few years ago. While it expected that prices will begin to stabilize and “flat line” – for the foreseeable future, it will remain a sellers market
#2 – Interest rates are going up
Rates are really good right now. But as the market and economy continue to stabilize, cost of goods goes up. Interest rates are no exception. As rates go up, your purchase power goes down, meaning your pre-approved for less and the same something payment lands you less of a house.
#3 – Waiting on your current home will cost you
If you’re waiting to buy because you want the value of your current home to go up before you sell it consider this, if the value of your current home goes up, so does the value of the home you’re going to buy.
This Year: Sell your $100,000 house and buy a $150,000 house
or wait until next year…
prices next year go up 10%
2015: Sell your home for $110,000! Buy your new house for $165,000….
That’s a loss of $5,000
#4 – Renting is a WASTE of money
Unless you don’t qualify yet to buy or your situation is temporary, you’re throwing money out the window. And if that doesn’t entice you, buying is cheaper than renting anyway! Let use a 1000 SqFt home in Farmington Hills as an example.
Cost to Rent $1,000 per month
Cost to Buy $775 per month incl taxes and insurance
Mortgage payment estimated using FHA interest rates, prices, and taxes at the time this email was drafted, see mortgage lender for exact figures.
#5 – Investing in Yourself
Owning a home is like opening a really big savings account. As you pay the home off and as values go up, the equity in your home goes up! The interest you’ll gain in a traditional savings account is far less than the potential for interest in the form of home equity. And you don’t have to pay taxes on it! (Unless its over $250,000 of course)
So lets do this! If we aren’ already sending you a property search, you can use the “Find My Dream Home” page on my website to get started: