Dear Associates,
Below is an article that every buyer must read. Affordable pricing and low interest rates are still making this the perfect time to buy a home or investment property, but the window may be closing.
- Owning is cheaper than renting by
35%
Supporting stats are based on
calculating the cost of buying and renting for identical sets of properties,
including maintenance, insurance, taxes, closing costs, down payment, sales
proceeds, and the monthly mortgage payment on a 30-year fixed rate loan with
20% down and monthly rent. Also assumed that people will stay in their
homes for 7 years, deduct their mortgage interest and property tax payments at
the 25% tax bracket and get modest home price appreciation (approximately 3%
annually).
- Calculations show that for 78 of
the nation’s top 100 largest metro areas, the tipping point for the
financial gain of owing vs. renting is if interest rates hit 10%.
o We’re still well below 5%!
o This is a huge incentive for buyers to
buy now!
- Because both home prices and
interest rates continue to show signs of increasing, by next year, buying
probably won’t be as cheap relative to renting next year.
o
Buy now!
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