We are repeating some of our reasons again, as we continue to see a lot of apprehension and b/c rates are rising.
Benefits from buying:
1. Inflation Hedge; 2. Building Equity; 3. Feels Good to Own; and 4. Lock in Low Rates. #4 is especially apt now b/c rates are definitely going up.
Lastly – we tell everyone not to worry about timing the market. This is from our October 10th Blog:
We have many clients who come to us concerned about timing the market. While it is of course advantageous to buy at the bottom, the reality is that nobody ever knows what the market will do. The more important thing for young homebuyers to remember is that property values in the Bay Area always come back eventually, and the sooner you can start making payments on a home the better off you may be.
Our database is full of success stories involving clients of ours who squeezed into properties when they were very young and who now have over $1 million in equity.
These people did not “time the market” or do anything unique; they simply bought young, lived frugally and house-hopped from “cottages to castles.”
Here are two examples:
Gwen and Tony’s Story: Bought in Concord 1985 for $150,000 at age 23. Bought in Concord again for $350,000 in late 1980s. Bought in Lafayette in late 1990s for $700,000. Lafayette home is now worth $1.7 million. Gwen and Tony now have over $1 million in equity.
Bill and Mary’s Story: Bought in Martinez in 1989 for $212,000 at age 25. Bought in San Ramon in late 1990s for $400,000. Bought in Walnut Creek in 2000 for $500,000. Bought in Alamo for $1.2 million in 2011. Alamo home is now worth $1.8 million. Bill and Mary now have over $1 million in equity.
Their property values went up and down, but they stuck out the market, paid down their mortgages, moved up when they could, and ended up way ahead. Both actually bought in the late 1980s during a market peak and lost equity for a while. Moral: buy young, stay in, and don’t worry about timing the market.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167
