The Cost of Waiting to Buy a home in Maui, Hawaii
Are you waiting for interest rates to get lower?
Or for someone to tell you the market has hit bottom?
The financial news has choke stories warning people about the inability to predict the bottom of the stock market. A 40% decrease in stock prices in one year have uncovered some great values available for investors and buying them at their absolute lowest price will not make much difference for the people who hold them for a while.
Well . . . Have you ever considered the Cost of Waiting?
Hawaii home prices are very much the same. There has been a correction in the market and prices are down in most parts of the state. Combine these with the best rates we have ever seen and everyone will later look back and Talk Story and say, “This was the best time to buy.”
I’d like to save you from potentially making a $180,000.00 mistake.
Want to know more? Keep reading.
Let’s make an assumption that the house prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $500,000 to go down 5% to $475,000 and the interest rate goes up one percent from 4.25% to 5.25%, which is entirely possible, the buyer’s monthly payments will increase almost $500 per month. With this scenario, simply by waiting for the price to come down you’ll pay an extra $180,000.00 over the life of the loan. That is 500 dollars multiplied by 360 payments equals $180,000.00
Ouch! = You don’t want to make this mistake?
Call Howard Dinits RB Dinits Realty
808-874-0600 or 877-434-6487
For most buyers, a fixed monthly payment for their home is much more important than the price paid or even the equity in the home. If you act now and rates go up later, you will get more house for the same payment.
Follow Buffett’s lead.
We could learn from long time investors like Warren Buffett who is pushing 84, but he hasn’t been worried or trying to make a quick buck, no matter what the market has done. Rather, he’s been investing for the long term. In the past few years, that’s meant waiting for opportunities to present themselves. Now that they are, he’s striking with a vengeance and so should you.
Because of his patience, Buffett hasn’t had to compromise and he’s getting great companies at great prices. When Constellation Energy’s price dropped so suddenly in mid-September (from above $60 to the $20s), he was ready to pounce. Goldman and GE may have approached him, but you can be darn sure that he’d already done the bulk of his research beforehand.
To be great Real Estate investors, we need to be similarly prepared. In volatile times like these, the Hawaii Real Estate market presents us with loads of great values especially with Short Sales and reo’s . Just because house values have fallen since the peak, doesn’t mean they were not great long term investments.
Let me ask you? Do you know anyone that will sell you their home, for the same price they paid for it 10 years ago?
My advise to those concerned about their future is to take advantage of the best interest rates that we have seen in history.
Invest for the long term and build yourself a nest egg for your retirement.
For more information on Real Estate Investments please contact Certified Residential Specialist
Howard Dinits RB at Dinits Realty Maui 877-434-6487
www.EasyMauiRealEstate.com or Howard@HowardDinits.com
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