Presentation is loading. Please wait.

Presentation is loading. Please wait.

Why is it a Good Time to Buy a House?. I know what you’re thinking: “This is coming from a REAL ESTATE COMPANY. They cannot be objective!” Well... we’re.

Similar presentations


Presentation on theme: "Why is it a Good Time to Buy a House?. I know what you’re thinking: “This is coming from a REAL ESTATE COMPANY. They cannot be objective!” Well... we’re."— Presentation transcript:

1 Why is it a Good Time to Buy a House?

2 I know what you’re thinking: “This is coming from a REAL ESTATE COMPANY. They cannot be objective!” Well... we’re not! (We’d LOVE to help you buy!) But what we have done is put together information from objective sources about today’s market. Why is it a good time to buy a house?

3 Return on Investment (January 1, 2000 – March 1, 2011) MSN Money.com, Case Shiller Despite the loss of home value in the past few years, it’s important to look at the returns on investment over a longer period of time. Real estate has significantly out performed various portions of the stock market in the past 11 years. Consult with a real estate agent to know if you’re making a good buy. They can research comparable homes pricing and the history of value on the home you are interested in. Source: MSN Money.com, Case Shiller

4 Cost vs Price Cost versus price can be confusing. Price is only important the day you buy it and the day you sell it. However the timing of when you buy can really influence the cost. Mortgage interest rate are currently at almost unprecedented lows. A FHA mortgage can be obtained as low as 4.25% The likelihood of rates going lower is very unlikely.

5 30 Year Mortgage Rage Source: Federal Reserve 2006March 2011 Over the past year, rates for a 30 year fixed mortgage have begun to increase. In the last few weeks, the rate has again dropped. However, the general wisdom of economists tell us they can’t stay low very long. The current projections from many sources are that we will see steadily rising rates over the next year. Most sources predict anywhere from 1 to 1.5% higher than today.

6 Date Loan Amount Interest Rate Monthly Payment (P&I) Today$200, $1, Nov 2010$200, $ $83.27 Difference in mortgage payments Price is the same, it just costs more This is an example of what happened to rates from November 2010 to February 2011.

7 Monthly$83.27 Yearly$ Over 30 Years$29, Additional cost for waiting Although $83 may not seem like much, in this case, it amounts to about $1,000 a year in increased cost and almost $30,000 over 30 years. If you’re waiting to buy because you’re focused on Price you may be disappointed in your overall Cost. Buyers need to remember not to think short-term – waiting for a lower price now may mean paying a higher cost later.

8 2006March 2011 Source: Freddie Mac Prior to stimulus After stimulus 30 Year Mortgage Rates In this chart you can see what happened to interest rates after the government created the 2010 tax stimulate the housing industry. Although none of us have a crystal ball to see the future, economic sources tell us rates will increase.

9 Wall Street Journal 1/26/2011 ‎ "With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents…... the best low-risk buying opportunity out there today." Wall Street Journal

10 I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump.’ - January 2011 Donald Trump

11 “If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.” John Paulson

12 Source: Gallup 1/17/2011 “Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.” 67% Say Time to Buy Is Now


Download ppt "Why is it a Good Time to Buy a House?. I know what you’re thinking: “This is coming from a REAL ESTATE COMPANY. They cannot be objective!” Well... we’re."

Similar presentations


Ads by Google