Why Is It A Good Time To Buy Property?

(October 30, 2012 )

Now is a great time to buy a property.  So many people are hesitating to wait and see what is going to happen with the real estate market.  Don't miss the boat because I don't believe the sky is falling. Here are some great reasons it's a good time to buy....

There are so many properties on the market right now and not as many buyers. If you get a seller who is truly wanting to sell - you'll get a great price!!
If your buying to live in the home for the long haul it doesn't matter that the market may or may not drop next year. Get into your dream home or investment sooner rather than later.  Wait out the market for a few years and sell it when the market turns around to a seller's market. Stop wasting money on rent.
Interest rates are low but for how long?  If the interest rates go up here is what a buyer can possibly be in for if the interest rates change:

Interest rates and how they affect your client and their asset.

Property purchase is $1,000,000 down payment is $200,000

Monthly mortgage payment based on a $800,000 @ 2.99% = $3361
Monthly mortgage payment based on a $800,000 @ 3.99% = $3800
Interest paid at the end of the five year term at 2.99%  $112,515.19
Interest paid at the end of the five year term at 3.99%  $151,056.57
Difference in interest charges alone over the term is $38,541.38
Income needed to qualify for a five year term at 2.99% is $145,000 and at 3.99% $160,000

Property purchase price $400,000 down payment $80,000

Monthly mortgage payment based on $320,000 @2.99% = $1345
Monthly mortgage payment based on $320,000 @3.99% = $1520
Interest paid at the end of a five year term at 2.99% $45,006.08
Interest paid at the end of a five year term at 3.99% $60,422.63
Difference in interest charges alone over the term is $15,416.55
Income needed to qualify for a five year term at 2.99% $65,000 at 3.99% $70,000

Please do not hesitate to contact me with any questions.  I will be happy to walk you through the process!