Archive for January, 2015
Why is right now the strategically perfect moment to move up?
Because the mortgage interest-rate trend illustrated in that chart won’t last forever. There are other good reasons to make your move now, if moving’s on your mind, but these rates make a $200,000 home cheaper than the rent on half that much house.
There’s this, too: When rates turn upward, that will put a damper on already wilted demand, so we may be at the de facto top of this market swing. Prices have been stalled, as best, over the last year.
Washington does want to re-inflate the housing bubble. That’s the reasoning behind all the everything-old-is-new-again exotic loan products, including 3% FHA-beaters from Fannie and Freddie.
But at the same time, both mortgage-interest-deductibility and residential capital-gains deferment are political footballs always in play.
As matters of abstract economics, all of this is destructive, market machinations devised to churn the residential real estate market to no productive benefit.
But as matters of personal financial strategy, events like these provide a useful guide of when and how to act.
Ergo: If you plan to move up in the near future, the future is now:
1. If you have a house to sell, low interest rates increase your buyer pool. It’s a buyer’s market, so you’re going to sell for what you can get, but qualified buyers are out there for turn-key-livable homes,
2. Whatever mortgage you qualify for, you qualify for a lot of house. To be a seller in a buyer’s market is no fun. To be a buyer is a delight. The house you’re looking for is the one that can be home to you for a long time, if necessary. Your payment will be very low. You’re looking for a home that will make you love that loan payment just that much more.
3. Manage your cash. Low-down loans are bad for the economy, long-term, but they may be very good for you. You don’t want more house than you can afford, but you may want the house that will be perfect for you after a few years of concentrated rehab. In this golden moment, you have options about where to put your money, with Uncle Sam practically begging you to put your accumulated equity into other investments.
My take? Let’s dance. We list strong, to get our houses under contract quickly and for top dollar. We work with great lenders who can get you the most money for you money. And we can get you moved into the home you know you’ll be needing for your family in the years ahead.
There may not be another move-up moment this perfect anytime soon. Call me at 602-740-7531 and let’s get busy today.No comments