Friday, December 11, 2009

Not A Headline I'd Write... But....

"If You Don't Buy A House Now You're Stupid, Or Broke"
is the headline from a story found in Business Week, written by Marc Roth.

As MY headline explains, it's not a headline I'd write... (yet) BUT... Listen Up:

In the early 90s I bought a house for $150K,  my mortgage payment was $1250  month.

The week of Thanksgiving (2009) I sold a house for $300K, and the buyers mortgage payment is $1265 a month.

Both include the cost of escrows (your taxes and insurance).  The main difference is interest rates.  A 30 year fixed mortgage when I bought was 8.5% (with 2 points).  The 2009 buyer paid no points and got an interest rate well below 5%. 

The resulting question:

Is he really paying more for his house NOW than I did for my house THEN?

If you've been on the fence about buying, you need to seriously consider this example, and others like it.  I know, some people don't have job security, are fighting bad credit, or have other personal circumstances that make buying impossible, improbable or risky.  But, if you are not one of those people, you better get off that fence before those pickets go right up your..... well, near where guys keep their wallets if you know what I mean... The point is, you may not ever be able to get off that fence. 

(That fence doesn't look too comfortable to me!)

And, remember, I've been TRYING to tell you this, my friends. (ew, that sounded a bit "McCain-ish didn't it.  He lost, maybe I should take note). 

But seriously, I post this blog where everyone can see it, but I also post it for my FRIENDS. It's the same advice, whether I've met you or you are my own flesh and blood.  So, please, pay attention.  Please try to listen. 

See these prior posts:

If you've heard enough and think you're ready, give me a call.  I will help you analyze your situation to see if buying is a good idea for you right now.

For other questions, feel free to contact me anytime:
Vicky Chrisner
Ofc: 702-669-3142
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