Zack Childress Should You Buy or Not?

Zack childress-The article below is going to give you “The top 5 Reasons to Buy a House Right Now”, and I have to say, I agree with most of them . I’m going to give you my 2 cents on this, but before I do that. I also want to point out to you that buying a house should not only be a emotional decision, it should also should be a investment decision.

When you buy a house, it is going to be the biggest investment that you purchase in your life. Weather it be your first home or your first investment property.  I want you to keep in consideration that when your looking at a house to buy for the first time, or  to move out of that apartment and into home ownership, sometimes we have to look at it as a stepping stone.

Yes, you may want the big house, but you may be better off  buying the smaller house in maybe not such a new neighborhood to get  established as a home owner.  Buy it with equity in it because you can buy it cheaper.  Sit on it for a year and then sell that house.

Now after a year you are into what is known as long term capitol gains, You get the ability to get $250,000 that you can push of from taxable gains, the beauty of that is now you can take that sale and the equity in that property and place it into a move up house.  Over the next 5-7 years you could eventually get into the house you want.

I know we go after the biggest house we want the first time we go out and buy a house. In reality a house is not an emotional purchase, even though it can seem that way. Buying a home is still one of the largest investment tools that you will ever put into your life

With that said I  also wanna encourage you to buy.  I love the article entitled The Top 5 Reasons to Buy Right Now”.

In the first reason they say Interest rates are still low”.  That is in fact true, interest rates are at a historical low if you look over he past several decades, however they are not going to stay low forever. Why, because the stock market is going to take another plummet.

When that happens money is going to be moved from stocks to bonds, once this happens  money gets moved to bonds it means that more investors are chasing the bond market. A lot of the mortgages that are put into place today in this market are attached to lyborgs and bond markets, which means that the interest rates are going to go higher because the need is not is not going to be as relevant with there being more investors coming in.

So I agree the interest rates are still low and they will not stay this way forever.

The Second reason, they say There is More Inventory”. I do agree with that too. Some people will say that the inventory is drying up.

I would look at what kind of investment properties or homes are they going after. If they are looking for the 40-50 cents on the dollar deals, then yes that inventory is drying up. We have to do more of our own direct response marketing to get the best deals.

If your just looking to buy, there is plenty of inventory on the MLS. For instance in the foreclosure market alone 1 in every 1200 houses are going into foreclosure right now. Just imagine how many are in your market.  We have seen a 10.4% increase in houses going to the auctions in the last year alone.

There is inventory coming. There is inventory on the market. You are in a perfect position to take advantage of that.

The Third reason, they say, Home Prices are Going Up”. I agree with this as well, all across the country right now we are seeing markets growing 10-30% appreciation.

You need to find the right areas to buy in to absorb that appreciation, that is known as an appreciation play. Over the next 1-2 years you could bank on that appreciation and sell out. For instance; if you bought it for $100,000 and it’s appreciating at 20%  per year and you hold it for 2 years, you could gain $40,000 just by buying that house.

The Fourth reason they say, Rents are Sky High”. The reason this is happening; displaced homeowners that are getting pushed into the market place.

People that are going into foreclosure are loosing their homes.  Whatever the case maybe, they have lost that property. Now they are being pushed out of home ownership and into the rental market.  This has increased the demand for rental properties, which is why we see that going up.

We are seeing some markets go up as much as 20-30% even some cases 40% in rent. On the flip side of that you have markets that will never increase that much,  they have what is known as rent caps. Markets like Berkley Ca, and San fransico Ca, Oakwood Ca, New York NY and New Jersey,  areas in that kind of major metropolitan market do put rent caps in place.  Once they reach that rent cap they can’t increase that rent anymore.

Rent prices are sky high, you could get a lower monthly payment from buying a house, or you could move into the rental market and absorb those higher rents.

The fifth reason they say is, Employment is on The Rise”. I am happy to say that someone is actually reporting that we are putting jobs back into the market.

They say that the US economy has added 200,000 new jobs per month right now. This in turn means that our unemployment rates will start to decrease, which will help to stabilize our economy even more.

Read the article below, give me some insight to what your seeing in your market. I would love to hear what your 2 cents are on this.

That’s my 2 cents, give me yours.

Top 5 Reasons to Buy a House Right Now

Real Estate News

Aug 5, 2014

By:Chrystal Caruthers


Buying a house is a highly individual decision—and a local one—but current trends are creating a favorable situation for many would-be homeowners.

Interest rates are low, employment is rising, home prices—in most markets—are still well below their peaks, and rents are through the roof.

Every family and each individual has various factors affecting the ability and the decision to buy a home. If you live in a market where studio apartments are $2,400 per month—while nearby condos sell for $300,000—it might make sense to buy a house instead.

(Remember, a local REALTOR® always is your best resource in helping you assess market conditions.)

Five Compelling Reasons to Buy a House Right Now

  1. Interest Rates Are Still Low

Mortgage interest rates are still low—for now.

A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5% rates next year. As interest rates increase, so do your monthly payments.

A $300,000 house at 4.16% with 20% down would have a monthly payment of $1,168. With a 5% interest rate, that payment increases to $1,288.

  1. There’s More Inventory

As more houses enter the for sale market, prices stabilize.

“Inventories are at their highest level in over a year, and price gains have slowed to much more welcoming levels,” said Lawrence Yun, Chief Economist at the National Association of REALTORS®.

The upside is consumers now have more choices, if they are looking at existing homes.

New homes are another story: Yun says new construction needs to double its current production to meet market demand.

  1. Home Prices Are Going Up

Home prices are rising.

The median price of an existing home was $223,300 in June, or 4.3% higher than June 2013. That’s the 28th consecutive month of year-over-year price gains, and economists expect that trend to continue. However, we are still at least 20% off the peak prices of 2006.

“Attempting to buy a home when the market is at its lowest point—or to sell at the peak—is tricky,” said Jonathan Smoke, Chief Economist for®.

He compares it to trying to time the stock market.

“You might get lucky one or two times, but overall, timing the market does not work,” Smoke added. “It all points to purchasing power, and that’s a reflection of price and interest rates, which will both be higher in the future.”

  1. Rents Are Sky-High

If you live in a big city, then you know rent is astronomical. In San Francisco, many people are spending 42% of their monthly income to pay the rent. Nationwide, rents are rising at a 4% annual clip.

It’s not unusual to see adults rooming together in expensive cities like New York, San Francisco and Chicago, but everyone needs his or her own space at some point.

Buying a home would lock in your monthly payment and stabilize your finances with a fixed-rate mortgage. This is, of course, assuming you don’t live the San Francisco area, where the average price of a home is $1 million.

(If you’re renting and never thought you could afford to buy a house, try our Rent vs. Buy calculator to see what’s possible.)

  1. Employment on the Rise

Perhaps nothing is as important to the financial stability you need to buy a home as steady employment. The U.S. economy is finally adding jobs—about 200,000 new jobs per month.

The next generation of home buyers—the Millennials—has been particularly affected by the nation’s job slump. Saddled with student loans and tight lending restrictions, many in this generation have been living with their parents to save money until the economy picks up.

check zack childress buy to property

If your employment prospects look good these days and the other four factors check out, then it may indeed be the right time for you to buy a home of your own

Zack Childress Should You Buy or Not?
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Zack Childress Should You Buy or Not?
zack childress -The top 5 Reasons to Buy a House Right Now, and I have to say, I agree with most of them .I'm going to give you my 2 cents on this,