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To Buy or not to Buy. THAT is the Question! By Kandis Glasgow I had a conversation the other day with a potential buyer. I say potential because she insisted that now was a really bad time to buy Real Estate. The market was bad, home prices are dropping and she couldn’t see investing in that type of market. WOW! Does she not understand economics? I'm not a money guru, but my thought is that you always buy things when they cost the least and not the most. The real estate industry, like any other market, has ebbs and flows. The best time to buy a product is when the market is low. Prices are lower and the market is flooded with great deals for the buyer or investor. The best time to sell is when the market is at its peak so that the seller makes a greater profit due to supply and demand. The less product (fewer homes) that is available, the more a seller can ask for that product (home). The real estate industry right now is at a low point in some areas of the nation and in our state of Colorado.
NOW IS THE TIME TO BUY! The market is flooded with deals/product for the buyer/investor. The price of housing is dropping slightly and, unfortunately, many people who were either unwise or uniformed about financing their homes are going into foreclosure. Foreclosure is bad for the owner GREAT for the buyer. It is still possible to purchase homes that are priced below market value. That means you can buy a home now that has built in equity. That is as good as money in your pocket right now!
The Real Estate market like any other will be on the rise again. It has cooled off slightly due to rising interest rates, the rising cost of fuel and seasonal fluctuation in the market. The past five years have seen the lowest interest rates in over 40 years. So, as you can well imagine, interest rates are going to do nothing but take a steady rise over the next few years. Hopefully, we will soon realize that NOW is the time to buy before rates go up again. As soon a people make that realization, the market will be on the rise again, along with the economy, and the person who made their purchase in the low market will be smiling all the way to the bank.
Here is my testimonial to this article. I purchase my Condo, with the help of my Real Estate savvy brother, when the market was low for $58,000 at 9% interest. I have refinanced twice to take money out to pay off bills and my car, go to New Zealand for a year and take another New Zealand vacation for two in March of this year AND to take advantage of the lower interest rates. The balance owed now on my property is about $68,000 at and interest rate of 6.58%. The appraisal I just had came in at approximately $123,000. That means that after paying off credit cards, paying off cars, going on vacation to New Zealand twice, taking a year off work and putting $10,000 in the bank, I still have $55,000 in equity. You just can’t beat owning even a small piece of property in the right neighborhood!
Let me give you a better example. My parents bought a house with acreage in a part of Denver that had yet to be developed. You actually had to drive on a dirt road to get there. It had five acres, a barn, a three car garage and a 2900 sq. ft. home. They paid approximately $160,000. They lived in the home while Highlands Ranch was built up around them. After twelve years they sold their property to move to Utah. They asked for and got nearly a half a million dollars for their $160,000 investment. Needless to say they paid cash for their property in Utah, which now is worth more than what they paid for it. My mom thought they had over paid at the time. Little did they know that St. George, Utah would be one of the fastest growing cities in the U.S. Both my mother and my brother are now Realtors in Utah.
There are hundreds of stories out there just like these. These just happen to be personal experiences.
Let me make this Final Statement! There is never a bad time to own property! If you are continuing to rent you are continuing to put money into someone else’s pocket. Stop the insanity! Invest in YOUR future, not someone else’s! |
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