$30,000 is NOT chump change! However, that is what you could be giving up if you wait ONE YEAR to buy a piece of property. That’s right $30,000! Here’s the math…
If interest rates go up 1% and property values increase by 5% the homes you are looking at this year for $210,000 will be a thing of the past. Next year you will be looking at $180,000 homes for the same payment!
The principle and interest payment on an average priced home of $210,000 at 4.5% interest for 30 years with a 4% downpayment is $1021 per month. If we bump the interest rate just 1%, which is entirely likely, the payment jumps to $1145 per month. So to compare apples to apples we must find the loan amount that matches that payment. That number is $187,500.00. If we take a 4% appreciation into account then today’s house that is on the market for $180,000 will be worth $187,500 next year.
Are you renting right now and thinking “maybe if i wait a year I can save up more money and afford a larger home”? If you are, you are among the tens of thousands of people that are making the same mistake.
Beat the system and get out of your comfort zone! Join millions of people who are homeowners and begin to realize the amazing benefits, financially and intrinsically, who have taken the first steps towards true wealth, home ownership!
