Did It Make Sense to Wait?

Tuesday, January 13, 2015 | 7:21 pm

There are many people out there who debated purchasing a home over the course of the last year, but ultimately did not. Whatever their reasons were for delaying, let’s look at whether the decision to wait to buy made sense.

What happened in 2014?

The 30 year fixed rate on January 2, 2014 was 4.53% as reported by Freddie Mac. Looking at the chart below, your monthly mortgage payment with principal and interest for a $250,000 home would have been $1,271.17. Even though interest rates have dropped below 4% and ended 2014 at 3.87%, home prices appreciated by 4.8 percent over the same time according to the Home Price Expectation Survey. So that same home appreciated by $12,000 and now costs $262,000. The most recent report by Freddie Mac reports the average 30-year fixed rate is currently 3.73%.

differencepayment

Many may say, “See waiting a year made total sense, I’m saving $60 a month.” And they’d be right, over the course of the year they saved $729.36. But what they haven’t realized, is that as the price of the home they purchased went up by $12,000, even if they just put a down payment of 5%, they had to come up with an additional $600 at the start of the process. So really they’ve only saved $129.36 in a year. Is a savings of $11 a month really worth holding off on pursuing a home to call your own after you weigh all the benefits that come along with that?

• Building equity you can borrow against in the future
• Having a safe, comfortable environment that fits your family’s needs
• Having control over your space
• Tax benefits
• And so many more…

Bottom Line

The experts are predicting that homes will appreciate by another 4% and interest rates will increase by a full percentage point by the end of 2015. If you are in a position to be able to buy a home now before these predictions become reality, contact a local real estate professional and start the process.

Whether you are buying, selling or just need friendly Real Estate advice, contact us anytime.

AmyandMarlin.com – (818) 568-4243

agent-pic-amyAbout Amy Dginguerian

Most people know Amy Dginguerian from her time in front of the camera as an actress, model and host, or behind the lens as a Producer in Hollywood. Amy built her Hollywood career with a simple strategy; be professional, be persistent, be courteous and be honest. Her hard work and determination took her from starring roles on TV and Film, to gracing the covers and inside of hundreds of magazines to Campaigns for some of the biggest companies in the world. She is also a 2-time Billboard Recording artist and also an Author.

But what most people don’t know about Amy Dginguerian is that she has always had a great appreciation and knack as a businesswoman. She started a modeling agency in one of the most competitive Cities in the world, (Hollywood) successfully represented over 400 models and talent. She kept her business thriving while traveling the world as a “WWE Diva.” Amy also took her love of business while she was garnering success as an actress and model and parlayed it into something that she truly loved- homes. Amy’s passion for homes and home ownership was realized after she bought her first investment property. She was fortunate enough to understand the real estate market and make smart investments that truly paid off. While most of her peers were struggling to make rent, Amy felt blessed to own a multitude of money making properties.

Amy became a Mom for the first time to miracle twins in May of 2009. Becoming a mother helped stir the fire of appreciation she has always had for home ownership and Real estate investments and so she decided to become a Licensed Sales Agent. She is also the Co-founder of JustSold.com.

Designations and Certificates:
• Senior Real Estate Specialist (SRES)
• Creating Value for Your Clients
• Video Marketing
• Managing Your Online Presence
• Putting Technology to Work for your Clients
• Client Negotiations
• Navigating the Social Media Maze

 

 

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