Powerful reasons to buy now:
- Rates are near historical lows, and expected to rise. For example, at 6.5%, the payment on $300,000 is about $1,900. When rates go to 6.875% it will be about $75 per month higher, or more than $25,000 over the life of the loan. Buying now, when rates are low, can save you a lot of money.
- Many home currently for sale are great values. Compare buying now for $300,000 versus buying the same house in the future for $310,000. Not only are you paying an extra $10,000 for the house, you are also paying an extra $60 per month which means that over the life of the loan you will actually pay a total of over $21,000 more by waiting. Buying now, while prices are low, can save you a lot of money.
- The power of leveraging. Real estate provides many unique investment advantages, such as a multitude of tax breaks, a way to diversify your investments, and benefits to quality of life by having an asset that can be lived in or rented. Another advantage is the power of leveraging. For example, if you buy a house of $300,000 and put 5% down ($15,000) and the house appreciates by just 1% ($3,000), you will realize a 20% return on your investment. That is because you only invest a fraction of the value of the asset, but enjoy the appreciation on the entire asset. Buying now, using the power of leveraging, can make you a lot of money.
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Nancy E. Griffin
Kinlin Grover GMAC Real Estate
Certified International Property Specialist
193 Cranberry Highway
Orleans, Cape Cod, MA 02653
ABR, FIABCI, CIPS, TNR
508.632-0576 fax
508.726.7914 cell
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