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!
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.
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.
Copyright 2009-2011 - The Branch Team
The Branch Team - Texas Real Estate Broker 547597 | Team Members are Texas Licensed Real Estate Professionals
Tom Branch - National Mortgage Licensing System 341963
Important Notice: The Branch Team with RE/MAX Dallas Suburbs is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental.