I know, I know, real estate agents say this all the time but we are actually in a very interesting time. Rents are increasing rapidly and many investors are now off the market since many homes are not in foreclosure or default any longer. This is great news for people that really want to own a house. Even if you are considering moving up or downsizing, 2015 might be a great year to do so.
Many programs for low income or no down payment homebuyers have gone away as of January 1 but that means there are more homes for those that can manage the 3.5% down or even 10% down payment of a conventional loan. There is simply not as much competition out there and yet there are a good number of homes on the market without the market shifting too far to the buyer’s market side. We are actually in quite a “normal market”; something quite rare in the real estate industry.
#2. Great Hurdle Rate
We are also looking a decent hurdle rate. This is the minimum rate a person or company expects to earn when investing in a project. Currently, this is favorable toward homeownership as the hurdle rate is the point at which the ROI from owning is at the same level as investing your money elsewhere. Did you get that? That means that investing in real estate is now just as good if not better than investing anywhere else…. even great return stocks and investments!
This unique point in time doesn’t come up that often. Many home buyers should really consider investing their wealth into a home, either for themselves or as an investment since rents are also increasing across the country, not just in Arizona.
#3. Interest Rates…. Let me say it again INTEREST RATES!
If you plan on financing, rates are still incredibly low. Some 15 year mortgages can be gained for as little as 2% APR depending on credit and income. That’s amazing! This means you can afford to buy a bigger home OR get a shorter term, paying off your mortgage that much sooner and enjoying homeownership without the monthly mortgage payment.
If you’ve been on the fence about buying, what are you waiting for? You might be surprised at what you could afford if you give it a chance. Holiday’s are over, kids are starting to think about Summer and it’s probably the BEST time of year to buy a house. Give me a call or browse my website for more information to get started looking at Scottsdale homes.