Building Wealth in Today’s Market…Buy a new house, plant a tree!

plant a tree

The stock market is at an all-time high ….. nearly 17,000…S&P has almost reached 2000 which was thought to be unreachable and there’s been no correction for 23 months of 10% or more, which normally happens every 18 months, so get ready for a correction, it is inevitable. If you need further evidence, look at what Main Street has been doing lately. Mutual fund investors have been dumping their stock funds since late April, with investors withdrawing $13.3 billion more from domestic stock funds and they have invested….

So where do you put your money?…… Houses…..real estate!!!

Consumers should still take advantage of the all time low interest rates! For the last 8 to 10 months prices have flattened out and there is more inventory to choose from, so now is a great time to buy!

Last week I got an opportunity to help young family trade their old house for a brand-new home! This young family had an opportunity to buy a new home at builder cost because the builder was offering a special incentive for their employees but in order to take advantage of this opportunity they had to figure out how they could trade in their old house. Fortunately,  we were able to help!

This  family elected to keep their home as an asset and offer a lease option to a prospective buyer…….that way the buyer would take excellent care of the home, treating it as their own from day one. The lease option was for three years which would allow the buyer, who was in a previous short sale, to rebuild their credit,  still build equity monthly and also lock in fixed prices over the next three years. We were able to show the family that with a little extra money monthly thrown towards principle and the tenant paying the mortgage, they could pay off the home in as little as 15 years. They would also be able to close on their new home at a cost of $200,000 that would be worth $300,000 the day they closed escrow. Imagine having $100,000 equity the day you close on your new home and owning your old house in 15 years! To truly make this a dream come true we are having them consider a 15 year mortgage on the new home which is below 4% so they will own their new home and their old house both within 15 years…….this is building wealth!


RISING RATES DRIVE BUYERS AND SELLERS TO THE STARTING LINE!

English: Anxious Athlete Waiting at Starting Line

 

3% for a 30 year fixed rate loan is ancient history. That should not surprise anyone. Who thought that would last?

Here is what it means for buyers and sellers:

Read the rest of this entry »


Wasting your agents time?

Retro LED Clock

So you’re thinking about buying real estate. Maybe its your first home, your next home, your last home, an investment in land, a flip or an income property. When do you call your real estate agent?

A friend of mine (if you are reading this right now you know I’m talking about you!), mentioned to me that he didn’t want to waste my time while he drove around neighborhoods and called on signs and looked at open houses and visited builders while he got ready to buy. Along the same lines, I read an article today that spelled out 6 things to do before you call your agent to sell your house. To my disappointment, 5 of the 6 things should be done with your agent! So what does wasting my time actually look like and when should you call me? Read the rest of this entry »


Keller Williams: This Month In Real Estate August 2011

 


5 Questions to Ask Yourself Before Buying a Home

In most parts of the country, the housing market is good (or great!) for buyers right

now – interest rates are bizarrely low, lots of inventory means lots to choose from, and the cost of renting has increased in a lot of markets. But just because the market’s good doesn’t mean it’s the right time for everyone to buy. The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you.So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones: Read the rest of this entry »

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