First-time homebuyers are flocking to the housing market in greater numbers than any time in the last few years. Renters who are ready and willing to buy are now realizing that they are also able to as well. Many first-time buyers are Millennials (born between 1981 – 1997).
If you are one of the many in this generation who sees your friends and family diving head first into the real estate market, and wonder if now is the time for you to do the same, keep reading!
TheCost of Waiting to Buyis defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
Let’s look at an example of what the experts are predicting for the upcoming year, and what that really would mean for you. Let’s say you’re 30 and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 4%.
Your monthly mortgage payment (principal & interest only) would be $1,193.54.
But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy. CoreLogicpredictsthat home prices will appreciate by 5.1% in the next 12 months; this means that same house you loved now costs, $262,750.
Freddie Macpredictsthat over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month is now$1,410.50.
The difference in payment is $216.96 PER MONTH!
That’s basically like taking $8 and tossing it out the window EVERY DAY!
Or you could look at it this way:
That’s your morning coffee everyday on the way to work (average $2) with $10 left for lunch!
There goes Friday Sushi Night! ($50 x 4)
Stressed Out? How about a few deep tissue massages with tip!
Need a new car? You could get a brand new car for $217 a month.
Let’s look at that number annually! Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!
Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $2,603, and we’re sure you could too!
Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spentan additional $78,105.60, all because when you were 30 you thought moving in 2015 was such a hassle or loved your apartment too much to leave yet.
Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready. But if they showed you that you could save $78,000 you’d at least listen to what they had to say.
They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…
Ion Real Estate is a hand-picked team of highly respectable experienced Realtors coming together to work with you. Please contact us anytime with any questions. We look forward to serving your Colorado real estate needs. Our experience and dedicated professionalism ensures our clients have exceptional representation every step of the way. At a time where bigger isn't always better, Ion Real Estate has chosen to remain a smaller, highly focused team in order to provide a level of personal service, attention and consideration to our clients that you simply won't find elsewhere. Our decades of experience in the unique world of Denver real estate positions us advantageously to handle all of your real estate needs
From: Denver The Mile High CityTOURIST INFORMATION DESK AT DENVER UN
"We cannot thank Jim & Julie and the team at Ion Real Estate enough!!! We were very impressed with Jim's knowledge of the business and his drive to find us our perfect home; from the lender-side and how to get the best deal to the realtor-side and everything in between. As first time home buyers we really appreciated Jim's direction in gathering everything we would need. In addition to Jim's wonderful guidance, Julie was exceptional to work with too. She was always willing to listen to our concerns and was very encouraging on our journey hunting down our first home. She is so dedicated that she found us "our" home during the holidays and we were under contract by New Year's, which was a great way to start off the new year. She found us our dream home, in a great location and we couldn't be happier. I always recommend Jim, Julie and Ion whenever someone I know says they are looking to buy or sell their home. Go with Ion, they make dreams come true.
Ana & Marc G