Do You Buy Real Estate When Prices are Low or High?
Posted Tuesday, June 18, 2013
Like any commodity, you’re going to make money if you buy real estate when prices are low and sell when prices are high. So why haven’t you, and millions of others like you, bought a home during the major downturn in the real estate market?
When pushed for an answer, many potential buyers respond that they’re afraid, unsure or allowing their emotions to guide them. They’re worried that real estate prices will see another huge drop. Or they’re unsure if prices have reached rock bottom so they can get the very lowest price possible.
Stop allowing your emotions to guide you. Face the facts. The real estate market is steadily improving. Those low prices are gradually moving higher and higher. It’s time to get off the fence and buy while real estate prices are still low. Then you’ll have the pleasure of selling after prices go higher.
If you’re still unsure if now is the best time for you to buy real estate, consider these additional factors:
- Rent will increase each year no matter what the real estate market does. What is the maximum interest rate you could ever pay, and what would your mortgage payments be at that rate? Have your mortgage broker do the math for you. Is that more or less than you’d pay for rent 10 years from now?
- Interest rates are at historic lows. Do you really want to miss out on both low home prices and low interest rates?
- You can deduct the mortgage interest from your taxes. In most cases, you can deduct all of your home mortgage interest. This can save you a bundle.
Interest rates are at historical lows
Deduct the mortgage interest