Why Rent When You Can Buy?

1409-turwill-laneThere are compelling reasons for buying a home SOON!

Don’t you wish you could predict when we will hit the bottom of the stock market and the housing market? The decrease of the stock market has created some great values for investors.

The housing market is similar! We are all aware that there has been a correction in the housing market. Prices have decreased in most parts of the country. Combine these low home prices with the attractive mortgage rates currently available and it is likely that folks will look back on this time saying “That was the best time to buy!”

So is it the right time for you? That is something that only you can decide, but, we can help you better understand your options. Let’s explore this a bit further…..

There are some folks who are eligable and who have a great deal to gain from purchasing a home now who are holding back. I suspect that some people may be waiting to purchase until they KNOW that home prices are at their lowest. But, you will not know the the bottom of the market until it begins rising again…..and then you will see it because you are looking back!

Let’s look at some of the major things to consider when purchasing a home. Interest rates are nearing an all time low! What happens if you wait for the “bottom” of the housing market and while you are waiting, the interest rate increases again. Consider the following scenario. Let’s make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 house to go down 5% to $237,500, the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible. The buyer’s monthly payments will increase almost $79 per month. That means that over a 15 year mortgage, the homeowner would pay an additional 14,220 for interest. For a 30 year mortgage the additional costs would be more like 28,500. The difference in costs of the home would be a differentce of $12,500. In this scenario, a home buyer would be better off paying for the home at the $250,000 rate and getting the lower interest rates.

In March of 2015, the interest rate is still hovering less than 5% for a 30 year loan. Interest rates were not this low since 1971!   Home values are currently still down significantly from their high point but are still very afforable. If you–or friends and family members you know–are contemplating purchasing a house, now is a great time to act.

Recently, we helped a couple who had been renting for approximately 10 years, purchase a 3 bedroom home with a garage, outbuilding and a large yard in Kalamazoo Township, for about $50,000. The home was sold a couple years ago for $130,000 but was being foreclosed on now, so the price was extremely low. Our clients ended up with a house payment of about $525 a month. Their former rent payment was closer to $650 a month — and they did not have a garage, outbuilding or nice yard.

This client had a good credit record but only ended up having to pay about $1200 total for all the costs of the purchase and securing the mortgage because of the loan that they were able to secure. There are still some low or no money down programs available today. So, judge for yourself. Was it a good time for them to purchase a home?

Perhaps the same options are available to you! We can help you make that determination!

image of Scots Pine Way condos - sold by the Veenstra Team
If you love the convenience of apartment living, there are still some exceptional opportunities for you to purchase a CONDO!  This can be the best of both worlds because much of the maintenance and exterior care is provided by the Condo Association, BUT the benefits of ownership, like the tax deductions, building equity,  personal satisfaction, complete freedom to decorate, etc are still yours. CLICK HERE and the Veenstra Team can set up a private website that will alert you to every condo currently on the market AND we will email you, at the same time as REALTORS, when new condos come on the market.

We are even aware of some BRAND NEW homes that can be purchased for costs of about $750 a month! CLICK HERE TO SEE MORE INFORMATION ABOUT THESE HOMES.  These homes even carry a 10 year warranty!!

There is no obligation when you ask for a FREE consultation. The only thing that it can do is help you! You will know more about your situation when you are done and you will be able to make the best choices! CLICK HERE and complete the form here and be sure to leave your phone number and we will be in touch. We are waiting to help you, send the form or call us today (269-350-5514).