Reg Gupton here. A friend of mine sent this recently. Thought you should see it. Maybe pass it on to your clients.
Over the last two years we have seen a tremendous swing in the housing market. A market we all took for granted for many years is now struggling through a correction. What was once a “no brainer” decision to invest in real estate now has many potential homeowners sitting on the sidelines, waiting and watching for things to turn around.
Are you one of those waiting? Maybe you should move now. Is this the right decision? Maybe. Is this the wrong decision? Maybe.
No guarantees come with any investment, but one thing we do know for certain is that if history is any guide, then my money is in real estate.
Historical Data from Fannie Mae indicates that real estate in the
There’s only one way to make money, so they say – Buy Low, Sell High. Clearly, right now is a great time to buy real estate. Inventory is high, mortgage rates are low, and there’s an $8K tax credit for first timers (who have not owned a principle residence in 3 years).
A great time to buy, you’ll agree, but not a great time to sell. As a result, homeowners who would like to sell are sitting tight. Admittedly, being a seller in a buyer’s market doesn’t hold a lot of charm.
But if you’re one of those sellers waiting to sell, you’re making a mistake that’s actually costing you money! Skeptical? Check out the high cost of waiting in the illustration below.
A property valued at $200k in 2005 might only be worth about $170k today (a 15% drop in value – or $30,000). A property valued at $400k in 2005 might only be worth about $340k today (15% drop in value – or $60,000).
If the sellers sells their house at $170k today (previously worth $200K), and buys the $340k house (previously worth $400K), then the seller/buyer in essence has gained $30K. Do the math.
Ian R Bennett
Premier Mortgage Group
1844 Folsom Street
Boulder, CO 80302
phone (303) 443-2050
fax (303) 447-6816
ibennett@pmglending.com
No comments:
Post a Comment