"Can’t you understand what’s happening here?
Don’t you see what’s happening?
Potter isn’t selling. Potter’s buying!
And why? Because w’re panicky and he’s not.
That’s why. He’s picking up some bargains."
— George Bailey from "It’s A Wonderful Life"
Dear Friend,
I’m often asked whether or not it’s a good time to buy a home. Mostly, I tell people that it’s always a good time to buy ─ as long as you’re buying the right home, in the right location, at the right price, on the right terms. Having said this, the odds of finding the right deal are looking pretty darn good these days.
The home-buying market hasn’t been this favorable in more than a decade. Interest rates are near record lows, averaging 5.4% in early February. Selling prices are very reasonable as well, and your choices of home types and locations have never been more plentiful.
By acting now and calling me, you could "move up" and save tens of thousands of dollars on your dream home. Even if you don’t think you’re in a position to buy your dream home, chances are you can upgrade both the size and location of your home, keep your mortgage in the same ballpark, and in a few years be holding an asset worth tens of thousands of dollars more than your existing home!
Since 1953, real estate has consistently appreciated, even through periodic adjustments in local markets in response to economic conditions. According to the National Association of Home Builders, home appreciation historically has averaged 4% to 6% annually.
What’s the bottom line? Wall Street can’t touch buying the right home on Main Street: If you put 10% percent down on a $200,000 house and benefited from the average 5-percent annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year alone! Earning $10,000 on an investment of $20,000 is an extraordinary 50-percent annual return (before paying your mortgage, which is mostly tax deductible).
By contrast, putting that $20,000 down payment into the stock market and getting a 5-percent gain (a feat in today’s fickle financial markets) would only yield a $1,000 profit.
Follow Mr. Potter and Be A Buyer. Call me today to get the ball rolling on your personal sequel to "It’s a Wonderful Life."
Dennis J. Rath
Professional Realtor
ERA Rath Realtors
(440)289-7284
p.s. Don’t listen to the media. They have successfully predicted 12 of the past 2 recessions!