Lisa and Jim's Northern Nevada Real Estate Blog: Is It the Right Time to Buy?

Is It the Right Time to Buy?

These are the good old days!  I really can remember when the market factors have aligned so perfectly for buys. 

Yes, there are some sad things happening in our real estate market today but ... there are many great things too!  Buyer's who can hope into the market and take advantage of it are lucky!  I believe they will be rewarded in the end!

Renting Versus Buying a Home

I had lunch with the sales staff of a local builder I represent yesterday. A couple of tasty pizzas combined with an interesting conversation led to this post.

Many of the potential buyers are walking in concerned about everything they are reading, hearing, and seeing in the national media. “It’s a bad time to buy”, seems to be the news of the day.

As we sat there and ate, we jumped onto Google and looked at the rents of an apartment complex within sight of the subdivision. The rent for a 1608 square foot apartment is $1639 a month. We compared that to a brand-new 1620 square-foot townhome. The townhome is priced at $195k. An FHA mortgage with a 3.5 percent down payment results in a mortgage payment of about $1626 including principle, interest, taxes, insurance, mortgage insurance, and HOA dues.

For the same money being paid for rent, one could own a townhome. These figures do not take the tax advantages or long-term appreciation in account.

Home and interest rates are both low. It will not stay that way. Home prices in North Texas are up 3.5 percent over last year and Collin County is up 5.4 percent. Interest rates will remain where they are as long as the government continues to purchase most of the mortgage loans. They cannot continue to do so forever.

I suspect we will look back at this period in 20 years as the golden opportunity of a lifetime.

Search the North Texas MLS.

Tom Branch, Broker, CDPE, SFR
Source: http://www.thebranchteam.com/wordpress/2011/06/26/is-it-the-right-time-to-buy/

Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton.  While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure.  Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.

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Comment balloon 3 commentsLisa Wetzel • June 26 2011 09:55AM

Comments

There is no why in the question why buy? Buy has been, will be and IS the preferable way to go if one can go that way....We must remember that Real Estate didn't fail, people did...all sorts of people. Land is blameless and owning a piece of the U.S. still makes sense...good post and thank you Lisa

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 8 years ago

Low rates and low prices seem to be a good combination.  However, a potential buyer needs to be truly ready to buy, not just talked into it.  Are they comfortable with their employment situation?  Can they rent the same home for significantly less? 

If they are ready, then right now is absolutely the time to buy.

Posted by Kevin Kueneke, San Diego Mortgage Banker (Caliber Home Loans) about 8 years ago

Richie - I agree, unlike stocks, when the value of the land or home drops, you still own it!  It's physical and does not evaporate like a stock.

Kevin - Of course, evaluating the whole picture is important ... I just like to point out that the emotional return is a tangible factor too.

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) about 8 years ago

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