Almost everyone is aware of the prolonged drought that has been plaguing
Southern California. It's a problem that may only be in its infancy, and there
appears to be no good answers... or are there?|
Last month, Keepting Current Matters reported that billionaire John
Paulson believes in the financial advantages of
homeownership. He has often repeated: "I think, from an individual
perspective, the best deal investment you can make is to buy a primary
residence that you're the owner-occupier of.” However, he has not been the only
billionaire to give such advice. As a matter of fact, that same advice has
been given by people of wealth throughout the history of our nation. Here is
a quote often attributed to Theodore
Roosevelt, 26th President of the United States and
billionaire real estate developer: “Every person who invests in well-selected
real estate … adopts the surest and safest method of becoming independent,
for real estate is the basis of wealth.”
Andrew Carnegie, one of the richest
entrepreneurs in American history said:
“90% of all millionaires became so through
owning real estate.”
Bottom Line If the same advice has been given by the wealthiest people in each era of our country’s history, perhaps we should take it. |
A second survey was done by Edelman
Berland which showed that: 
Spring is in full force; the
summer months are right around the corner. If you are debating moving up to
your dream home, here are four great reasons to consider buying today instead
of waiting.
1.) Buyer Demand is High; Inventory Is Low
Recent numbers show that buyer demand is at
the highest peak experienced in years, and inventory for sale is at a 4.6
months supply, which is still markedly lower than the 6.0 months needed for a
historically normal market. The National Association of Realtors, Chief
Economist, Lawrence Yun put it this way, "Demand
in many markets is far exceeding supply, and properties in March sold at a
faster rate than any month since last summer." Listing your
home today can greatly increase exposure to buyers who are out in force and
ready to act.
2.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a
distinguished panel of over 100 economists, investment strategists, and
housing market analysts. Their most recent report projects appreciation in
home values over the next five years to be between 11.7% (most pessimistic)
and 27.5% (most optimistic). The bottom in home prices has come and gone.
Home values will continue to appreciate for years. Waiting for your current
home’s value to increase before selling could price you out of your new home
if you aren't careful.
3.) Mortgage Interest Rates Are Still Near Record Lows
As we reported last week, interest rates have remained below 4% for some time now, and are
substantially lower than the rate previous generations paid when getting a
mortgage. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the
National Association of Realtors are in unison projecting that rates will
rise over the next 12 months. An increase in rates will impact YOUR monthly
mortgage payment. Even an increase of half a percentage point can put a dent
in your family’s net worth. Whether you are moving up or buying your first
home, your housing expense will be more a year from now if a mortgage is
necessary to purchase your home. |
