Now is a great time to buy –
Missed opportunities?
People buy in the toughest of markets. In 1981 interest rates on mortgages reached 18.5%, and that’s if you could even get a mortgage. Properties were sold in Myrtle Beach. Even in a market with high interest rates many made good long term investments. Ask someone who bought in the 80’s, I’ll bet they would say that they are glad they bought when they did. Most would say they have had increased property value, and most of the mortgages have been paid off by now. Most of those long term investments are free and clear. Many are producing strong rental streams for their owner. I would bet many investors that bought in the 80’ would say they are glad they bought when they did. . Long term investments pay off.
In a buyers’ market like we have in the Myrtle Beach area today, the opportunity to buy based on value is fantastic. A few years ago in the seller’s market, prices were escalating and it was perhaps one of the most difficult times to buy based on value. A few years ago people were buying like there was no tomorrow. A few years ago buyers were afraid of losing out. The shift has occurred. Now is the time to fear losing out on some of the best deals.
I do believe that most buyers are letting others do too much of their thinking for them. These other people might include family, friends, or the media. A lot of good information can come from these sources. On the other hand, if these are the only real estate sources people are using, then they are not getting the entire story. What’s missing? Expert advice. Professional advice. The media rarely tells the whole story. Most people only get half the story.
This economic outlook has happened all before, and it will happen again. What goes up must come down. More important what goes down has always come back up. Home values will most certainly continue their long standing trend of appreciation over time. And equity build up through mortgage debt pay down still remains a proven path to financial wealth.
Any successful real estate investor will tell you that real wealth comes from the combination of any appreciation plus debt pay down. And for home buyers this can be further enhanced by any available tax advantages for home ownership.
Buyers who choose to wait until prices come down more are also gambling that interest rates won’t go up. Low interest rates like today have an impact on the real monthly costs of ownership. Even a 10percent drop in home prices is immediately wiped out by a mere 1 percentage point increase in interest rates on a 30 year mortgage loan.
Buyers cannot perfectly time the market- on one can. The smartest people know this. Anyone who buys at the top of the market is just as unlucky and anyone who buys at the bottom of the market is lucky. People who buy in a buyers’ market are the smart ones. They aren’t looking for a killing. It’s about planning. They are looking for a sound decision with a predictable result. Smart ones ask “Has the market dropped enough to make a sensible purchase? Many times the answer is yes.
Do you think prices have dropped?
Do you think they will ever go back up?
Missed opportunity?
Find a Best Buy – Get while the getting’s good.
Want to learn more?
Call to set up some personal one on one consultation time.
It’s Free, and could be one of the best moves you make in this decade.
The Jerry Pinkas Real Estate Team 843-222-1926
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