In today’s real estate market, it can be difficult for many people to decide exactly how to invest their money. It’s even been jokingly said that you might be better off burying your money than investing it. Believe it or not though, making an investment in real estate rather than in other areas can still pay off for you in big ways.
With remarkably low interest rates and home prices, taking advantage of the prices at hand is something you don’t want to wait around for. Lary Cowart, an assistant professor of real estate and finance at UAB School of Business says that once prices start moving, these deals will only be something for the history books.
He also goes on to note:
“Holding out to try and find the lowest price is not a good strategy because if the house were to go down 10 percent but the interest rate goes up 1 percent you are not gaining anything,” says Cowart. “If rates go up 1 percent, say from 4 to 5 percent, that is a 25 percent increase in the interest rate; so the mortgage payment goes up by more than 10 percent and the amount of house that can be purchased goes down by more than 10 percent. People fail to realize that and it is another little thing that will cost them big over the 30-year life of the loan.”
If you’re looking for a new home or a vacation home in the Naples area, contact Linda Brand to learn about the best real estate deals in the area. Just visit our website at Linda Brand online!
Image via Chiot’s Run