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Suisun Real Estate Blog

HAVE YOU BEEN THINKING OF BUYING A HOME?

PRICES HAVEN'T BEEN THIS LOW IN YEARS!

Take a look around - single family homes are selling for less than $100,000 in many areas and condos can be purchased for $50,000 or less.  Imagine if you bought a $100,000 property and put 20% down. Your mortage payments could be as low as $450/month (principal and interest based on a 30-yr fixed loan at 5.5%.)  You could probably rent that same property for $1000/month - that's the definition of cash flow right there!

If you're renting a single family home for $800/month let's see how that compares to buying a home.  An FHA buyer only needs 3.5% of the purchase price for their down payment.  If you get a 30-year loan at 6% on a house that costs $119,000 and put $5000 down your payments would be roughly $848.00.  Did I mention this house is 2300 square feet with a fenced yard?  And that you can write off the interest you pay on the mortgage at tax time?

If you're undecided about whether it's the right time, call us and we'll tell you what we know about the market.  Yes, we do think prices will come down farther.  We don't have a crystal ball but this is our personal opinion.  But the lower they go, the more buyers there are competing for each house, making it more difficult for you to buy.  If there are 12 offers on a house you end up having to offer more than the asking price in order to be in the running.  And when prices go down interest rates typically go up.  I'd rather pay more money toward the principal than interest, wouldn't you?