1654 11th Ave., Olivehurst, CA 95961
| Price: | $180,000 |
| Type: | Single-family |
| Bed: | 3 |
| Bath: | 1 |
| Square Footage: | 1,100 |
| Lot Size: | 1 acre |
Sac Valley Agent, Horse Property SpecialistProviding Comprehensive Real Estate Services to Home Buyers and Sellers
Buying a Home
IT STILL MAKES SENSE TO BUY A HOME VERSUS RENTING Even if interest rates move a bit higher, it will not be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market. If payment on a new home is slightly higher due to increased interest rates, it generally will not stop purchasing the home they have in mind or the home of their dreams….. but if they feel their job is in jeopardy, that might be enough for them to have a change of heart. With the currently low levels of unemployment and the gains in job creations, the housing market should remain vibrant. Expect a moderate rate gain of 6-7% which is still very good. Here is an example. If you are paying $1500.00 per month and you landlord increases your payment by 5% each year, you would be paying almost $100,000 in a five year period. After all that, you have gained equity for someone else, you still own nothing. Remember when you decide you spruce up the place because you like your home to look nice and clean, you could be doing this for yourself and not someone else. There are a wide variety of programs to help buyers obtain a home with little to even zero down. The money you use to rent, you could use for your own mortgage. Home appreciation is a large part of the equity in owning a home. If your home with a value of $300,000 increased in appreciation 5% per year for 5 years, you have a value of $383,000, As you have been paying on your mortgage, your equity will also increase. In 5 years your $300,000 mortgage is reduced to $279,000, that is $21,000 in equity plus the appreciation of $83,000 gives you $104,000 in equity. Even if the appreciation was at 3.5% the result would be $77,000. If you find this information helpful and you have considered buying, Call me I will guide you in the direction of being a homeowner. The following articles provide useful information and are a great place to start when you're considering buying a home.
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