Our “Daily Comments” go out to thousands of professionals and get posted on the Web daily. We get nothing but accolades from our readers with an exception – a “know it all” college kid at UC Davis. He says things like “blah, blah, blah…lock now and buy now; you say it every week; we get it…”
Granted, that the “know it all” reader is one of our kids, we want to address his comment nonetheless. We say “lock now/buy now” for very good reasons.
- We have been in the business since the 1980s. Rates have NEVER been this low and they cannot stay this low. Any rate under 5% is a gift. Take it and you will be ecstatic in years to come.
- We think inflation is on the way. Inflation invariably drives up home values and rates significantly.
- The economy will not stay in the doldrums forever. It never does. It will spring back with surprising speed. This too will drive up rates and home values.
- Rates have hovered in the 8% range for most of our careers. A $100,000 loan at 8% yields a payment of $733/month. $100,000 at 4% yields a payment of $477. Sure, you can wait for housing prices to drop 10% more, but you might end up paying $1,000 more per month in payments.
- With these low rates and home values, rental properties cash flow like never before.
We could go on and on, but the above are just a few of the many reasons why we could not be more gung ho on real estate.
So, put that in your pipe and smoke it, son! Come to think of it – I actually hope you don’t have a pipe. But, in any case, we hope you now see why we repeat the “lock now/buy now” mantra.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167