I am seeing a lot of articles about missed real estate opportunities. Out here we call them the “cost of waiting to buy a house in Tooele Utah“.
There are articles that point out how much money you will lose this year because of the difference in home value that you would NOT earn if you waited until next year to buy. Others talk about how much leverage a home buyer may be giving up by waiting another 12 months.
And of course those folks that follow the cost of money are predicting what mortgage rates will be next year and what even a small uptick in the cost of a mortgage will mean over the life of the loan.
My favorite though (and easiest to explain) is the pitch about opportunity loss. Simply put, if you don’t buy one of the homes listed in Tooele County for around $300,000, and property prices increase 8%, (which is expected) then next year you will have missed the opportunity to have increased your families assets by $24,000.
That’s $2,000 per month.
I don’t know about you, but I don’t have and never have had a savings program or investment vehicle that even came close to increasing my net worth by $2,000 dollars per month.
So with that in mind, I thought I would share an article from my friends @ Keeping Current Matters that will give us something to start a conversation about looking at all of the homes listed for sale in Tooele County and finding out how to get one.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If you plan to buy a home, and buying property is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan. The cost of waiting to buy a house in Tooele Utah is HUGE
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Think you want to talk more? Need more information?
Give me a call.
Berna Sloan 435-840-5029
I would love to help you look at home ownership from all sides and determine if now is the time for you to step out.
I know where the homes are, which lenders to work with and how to find the best deals on a new home. And…… I know the cost of waiting to buy a house in Tooele Utah.