A First Time Home Buyer Perspective - Part 1

Remember these KEY TRUE facts:

1. Interest rates are at a historic low and history tells us that interest rates will trend up.

The KEY is not to wait for interest rates to increase!

As interest rates increase and if you bought a home with a fixed rate mortgage – your monthly COST WILL NOT increase! Unlike rents which will continue to rise.

As interest rates increase, buying power decreases and you will have to make buying concessions on your home i.e. price, location, features, etc.

We bought a home when we moved from Maryland to Florida and we were lucky at that time with a mortgage at an 18% interest rate!!!!

2. Buyers are waiting for the market to hit bottom

You can’t time the bottom of the market --- on any product or stock.

Can you time the price of gas?

Can you time the price of a car or a flat screen TV?

At least a home will appreciate over time.

Local markets are reacting differently to the economic forces. In North Charlotte, there are many communities which housing prices have already started to trend higher.

This is a buyer’s market --- ample supply at low prices. Sellers are willing to negotiate and even offer closing cost assistance!!

3. Lack of confidence in housing to appreciate in the future

When we moved from Florida to New Jersey, we bought a home and within 2-yrs the price dropped $15,000 (1989 recession). However, 15-yrs later our home appreciated 100%.

If you are buying a house for short term gain, you are an investor and not a homeowner. If you are buying a home for your family and become a valuable citizen of your community, your home will appreciate over time. Most if not all homes increase in price over time. Unlike a car which drops in value once you drive off the car lot, home values will have ups and downs but primarily increase in value over time.