Tuesday, May 28, 2024

To Buy or Not to Buy?

February 14, 2018 by  
Filed under Extra


Alicia Taylor

If I had a dollar for everyone who asked me if this is a good time to buy, I could retire early or at least take a nice vacation. All jokes aside, here are the facts:

  • Prices across the board are still affordable
  • Interest rates are still low
  • Down payments are minimal
  • Inventory is dwindling

So yes, it’s time to buy a piece of property. Many experts are saying prices will continue to rise, rents will increase, and interest rates will certainly rise over the next 12 months. Maybe they are right and maybe not — but who cares?

Clearly, we all want a deal — and the bragging rights that come with buying for the lowest price and selling for the highest profit. However, prices are rising and now is the time to pull the trigger. It doesn’t make much sense to worry about someone down the street who pays a few dollars less than you. My dad always said, “study long, study wrong.” Don’t miss a great opportunity fishing at the bottom, because you might end up with a handful of sand.

There are truly only two types of buyers: owners and investors. An owner is buying to live in the property and occupy it as their primary residence or vacation home. Investors, on the other hand, are buying with the sole intention of selling or renting. If you are buying with the intention of selling (or flipping) the property, you want to pick it up for the absolute lowest price, to maximize your profits.

With prices rising, those opportunities are not as plentiful — but they still exist. Investors buying to hold (rent) properties are not quite as cost sensitive. Every economic indicator says that rents will dramatically increase over the next decade and renting will be in high demand. Investors who play in this field simply look at the return on investment. They are happy to get monthly cash flow on an asset that is appreciating in value.

So what about you, the end user? Why should you buy? Simply because you must live somewhere and pay someone. Why not pay your own mortgage versus paying someone else’s? Currently, you can still write off mortgage interest — and with modest appreciation, and this low interest rate environment you can still buy at a great price and payment.

Don’t be that person, 15 years from now, talking about the great fourplex that you missed out on, or that perfect dirt lot, that a shopping mall ends up being built on, or just simply in a home that could have over six figures of equity — all because you had a failure to launch.


Alicia Taylor is a licensed Mortgage Banker and Real Estate Broker with over 25 years in the lending industry. If you are looking to purchase, refinance or sell your current property, please all Mortgage Solutions, LLC at (702) 368-0059.

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