Why NOW is still a great time to BUY real estate
You may have heard that interest rates are on the rise. Who cares! Rates in the high 3% and low 4% range are historically low and mortgage payments are still lower than most rent payments! Plus, real estate is a long term investment. You aren’t buying just to have a low monthly payment, you’re buying to build long-term equity. Take for example a house you purchase today for $200,000. With an average appreciation rate of 4%, your home could be worth $208,000 in a year and $295,000 in 10 years! This method of building wealth over time has two distinct advantages over other investments. The first is that most homeowners have a mortgage, which means they borrowed money from the bank and earned equity using the bank’s money instead of their personal cash. The other advantage is that you can borrow against the equity in your home if you ever need a loan or want to buy more real estate.