With prices of real estate going up daily, you may be asking yourself if real estate is still a good investment? Historically real estate has always been the “go to” financial investment for individuals that are looking for a strong investment that has little risk associated with it. Let me explain, although no one can guarantee what home values or mortgage rates will be a year from now, the experts generally agree that mortgage rates will go up and home prices will continue to rise, albeit at a more “normal” rate of appreciation, approximately 5.9%.
Let’s look at how this works:
- If the experts are right, home values will appreciate by an average of 5.9%
- The average interest rate today 2.97
If you want to buy a home for $350,000 today with 10% down, it will look something like this:
There are always many factors to consider when buying a house but from a purely financial perspective, it is better to jump into the market today than wait a year. As an extra bonus, if you sell a home before you buy, you have probably amassed equity that you can use to purchase your new property.
(statistics were taken from Keeping Current Matters)