| If you are buying real estate in today’s market you may have your choice of some very good deals. In some areas properties have dipped to pre 2001 prices. While many analysts have dated the beginning of the housing bubble to 1998, finding a property that is listed for about the same as it was in 2001 will generally, but not always, be a good investment.For buyers looking at a home for personal use or investment, a good rule of thumb on valuing property is comparing the monthly payments to a comprable rental amount. For example, in my neighborhood—which has been hit especially hard by the housing bubble—a two bedroom REO just sold across the street from me for about $260,000. The previous buyer had purchased the property in 2006 for $475,000. The home could easily be rented for $1,500 a month. Calculating a mortgage for that amount, less 20 percent down, at 4.5 percent interest rate, with $1,000 insurance per year, and 1.5 percent taxes for the area would make the monthly mortgage $1,412.24. When you figure in the tax savings and appreciation, buying real estate can still be a good investment.
In any case, it never hurts to look. Even if you’re just testing the waters, the information on this site can help you understand the buying process, market conditions, and what you’ll need to get started. The search function includes all the listings available in the MLS and allows you to get the most up-to-date status on the properties available for consumers. The mortgage calculator provides you with a good estimate of your monthly payments, including property insurance, and taxes. You can also contact me for a more precise calculation. |
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