Is it still time to buy?
Real estate has changed quite a bit over the years.
Buyers are becoming more educated and interested in adding real estate to their investment portfolios. This is a question that I am asked a lot which pertains to home buying as well as a revenue property (duplex, triplex or more):
It is still the time, if you make a well-planned purchase. You must first determine which criteria matters to you, which are negotiable and non-negotiable, in keeping with your budget and with a long-term perspective.
The table below will help you realize that buyers add value to their assets by owning a home worth more as well as profiting from low interest rates to pay off their mortgage capital more quickly. For a supplementary payment of merely $35 per month, a house owner can pay off the capital by an additional $1,680. It is like money in the bank and your property continues to increase in value.
| # Single family $123,000 (2000) | Single family $166,000 (2006) | |
|---|---|---|
| Interest rate (5 year / 25 year amortization) | 8.5 % | 5.5 % (or less) |
| Monthly/Yearly payment | $978 / $11,736 | $1,013 / $12,156 |
| Applied to the capital | $1 536 | $3 216 |