Why Should I Buy Now?

Question

Why should I buy now instead of a little on down the road when prices go down and intrest rates go up? Any insight on this?

Derek Guyer · Answer

There will always be motivated sellers in every market, so interest rates can help and sometimes make it worse for an investor.

During a time when interest rates are high though, multiple opportunities end up presenting themselves. As a result of higher interest rates, the market slows many times and sellers begin to become more desperate. Because of this, many of them will sell on seller financing and become more creative to get their property moved and to move on. Others will just drop the price to get it sold and off of their hands.

N/A N/A · Answer

I've heard of waiting until mortgage rates are at or around 10 percent, buying a home because when mortgage rates are high, prices will go down, and later refinancing. I have yet to wait and save up money. Is this one of the better ways to buy a home/multifamily?

Derek Guyer · Answer

Great thoughts, dcg123. I would like to also add that each market is different and to assume that all are going down or not already at their lowest point could be a big mistake. The market you are in may be on its way down, but many others are just now picking up, just now dead, or way up. But, when your strategy won't work in one area, don't think it's a flawed theory, it may be the wrong timing in the market.

So, your buying patterns should be based on market, pricing, timing, and your ability to handle and analyze each of those variables.

Dick Green · Answer

I generally advise clients that I can provide data and professional advice but not motivation.  Motivation to purchase is something created based on one's own peticular circumstances.

My first home was purchased in 1979, V.A. interest rates at the time were 10.5% with excellent credit.  In the early eighties I saw sub-prime rates as high as 21%....guess what?.....people were still buying and selling homes.  People will always need a place to stay it's Maslow's Law "Hiearchy of Human Needs".  Real Estate is a functional investment.

If one does not already own a home, it depends on who's mortgage one wants to pay, their own or someone else's. Or even better allow someone else to pay off your mortgage.

merely my views......