Interest Rates Drop again, what are you waiting for ?
So what do you think ? Interest rates drop again, prices are down, so what are you waiting for. Here is the thing, some of you may be saying, “sure Todd, you just want to make a sale, why should we buy now, prices can still go down.” The truth is you could be right, but then again if interest rates start going up in the next 6 months to 1 year, then you might have missed one of the greatest opportunities.
My advice is simple, if you are a first time buyer and you have the down payment saved and you are renting, then it is time to get into the market. The current interest rates are so good that you will be paying down the mortgage in less time. Keep one thing in mind though. When you get your approval for a mortgage amount, consider what it would cost to carry if the rates were 5 to 6 percent. These record low rates will not be like this forever and you are better to buy something that you can afford if rates to go up. Always think long term and your real estate investments will always pay off.
For all of you would be investors, remember in a down turn market, rentals become more attractive and the chances of getting better tenants increase. So take your time and find a good property, maybe with more then one income and get started.
A quick story……..and I will try not to bore you.
On the news the other day they said if you had invested in the DOW 10 years ago, so 1999, $10 000 and re invested all the dividends, it would be worth $9000 today. Ok that is brutal. My clients that I sold into homes 10 years ago with 10k down, so they put 5 percent down and bought a $200 000 home are now worth over $ 300 000 and they have also paid off some of the mortgage while living there or while renting it out and having others pay down the mortgage.
So yes, I am a Realtor, but the best investment still is REAL ESTATE.
Talk to you soon.
Todd