Is it just me or is anyone else over all the negativity towards the real estate market right now? Ughh…Articles, interviews, magazines, and other forms of news outlet that grabs consumer attention won’t stop blasting out news alerts about how depressing the market is, when underneath it all is actually opportunity waiting for you…only if you feel like money! If you don’t, might as well stop reading this now.
It amazes me how people will buy the most expensive things in life at the very top of the market, but once the market crashes and prices are 30-65% cheaper in some areas of the United States, people will not buy. I don’t get it, the house you wanted to buy that cost $600,000 – $1,500,000 a couple years ago is now going for $200,000- $400,000 less… Now I’m no Nostradamus, but history tells me that if you buy a house now, you will make money in 5-10 years if you decide to sell. Let’s dissect the market for the opportunities that I’m speaking of:
- YOU CAN GET A GREAT DEAL: 50% of the market is distressed properties (short sales or Bank owned) which means you are getting a home that is 10-30% below market value in Southern California, possibly even more if the listing agent knows how to get the price down on short sales.
- MORTGAGES ARE CHEAP: A 30 year loan is around 4.5% (that’s still historically low after a spike to 5.5% months ago) when Inflation picks up, you won’t see these interest rates till the next market crash. Also keep in mind that the government is looking to eliminate FHA purchases with 3.5% down and making all purchases 20% down. On top of that, there is talk of the 30 year loan being eliminated. If you are a potential home buyer or seller wanting to “WAIT” you might wait far too long to capture the 30 year loan with a 3.5% down payment. By the way, what are you waiting for?
- YOU’LL SAVE ON TAXES: Talk to your accountant on this one
- IT’LL BE YOURS: You won’t be paying someone else’s mortgage. You can remodel the home to your liking. You will feel more fulfilled and comfortable by living in YOUR OWN HOME.
- YOU’LL GET A BETTER HOME: That beautiful home of your dreams that was out of your price range years ago. Well, now its discounted by $200,000-$400,000 and it has all the newest design’s, technology already in it so there is no need to remodel!
- IT OFFERS SOME INFLATION PROTECTION:! Real Estate is a long term investment. Most wealthy investors are buying now, will rent the properties out and sell them at the top of the market, and then start over again. Everyone wants to be wealthy; best way to become it is do the opposite of everyone else! Buy low and sell high, most people do the opposite of that!
- FORCED SAVINGS: Right now, rent on a 2000 square foot home is almost the same as the mortgage on the same exact home. You’re basically paying someone else’s mortgage or should I say you’re paying into someone else’s equity at the moment if you’re renting. Use that $2,000/month to build your own equity and wealth!
- LOTS OF INVENTORY: There is estimated 14,000 homes available in Orange County. There will not be a double dip or a wave of foreclosures. This so called double dip is the homeowners that bought in 2007 and their loans will be getting fixed or are 30,60,90+ days late already and are trying to get a loan modification that they have a 90% chance of not getting! This basically means that more homeowners will be short selling their properties because of a mortgage that they can no longer afford.
Email me if you would like the factual graphs that I took all the information/numbers from to break it down into why it is now the time to buy a home. If you already own one, buy another!
I Hope this information was helpful, and if you or anyone you know is interested in more information or would like me to set them up to look at ALL properties online for free, just let me know and I’ll make it happen!
At Your Service,
Cory Strickland
Prudential California Realty
Cory@Stricklandteam.com
