What is happening with interest rates? Realtors' businesses are picking up steam, even though we know rates are ticking up. The 10-yr Treasury just hit a high since 2011 (3.51%), and Sweden just raised their bank rate by 100BPS last night! As the FED gears up to meet again and controlling inflation remains top of mind, they've got a .75-1% FED rate increase on the table. We know the recession is coming, and the FED is trying to fast-track it so that consumers will finally stop spending!
But if realtors are seeing a pick-up and are anticipating a solid October, WHY?
The text number is 855-930-0377. Text UPDATE to be added to the list
Some of what you'll learn in this 18-minute episode includes:
"If I purchase a median home last month in August, the median DMAR 11-county area home price was $579,900.
I buy a $579,900 home with 5% down, I'm putting down $28,995.
If I get a 6% interest rate and I get a 3.8% appreciation because that's what Core Logic is expecting that we're going to see for the next year forward, 3.8%, not the crazy double digits that we've seen.
Historically before the pandemic, the United States appreciated 3.6%. So we're returning back to normal.
So if I have a 3.8% appreciation in five years, I have a gain.
If that stays consistent with principal reduction every single year, knocking down my loan amount and a little bit an increase in value of 3.8% because I only put a limited number amount down and the power of leverage. I have the opportunity of that entire home value going up at the purchase price, not my down payment.
That's going to give me a net worth of $161,000.
I can't make that in the stock market in the next five years, unless your chooser is spot on because mine's broken. I can't make $161,000 in the next five years. And even if we see a dip and a slowdown, which again, because we have so limited supply, but even if the whole secret is don't sell, don't sell. Hold on through the dip and for the next five years. And that's where you're going to regain this opportunity.
In fact, year one with a 3.8% appreciation and the principal reduction based on a 6% interest rate, I actually make a 102% on my down payment.
I put down $28,995. I'm going to net out in equity gain $29,588.
That's just math, right? That's not a motion. That's just math."
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Landlord Issues with Forbearance and Where Did All the Jumbos Go?
Preparing Agents to be Able to Respond to the Rebound
Help us keep new moms connected with their nurses through Nurse-Family Partnership
HomeAid Colorado - Building Solutions for Their Communities
FHFA is Gonna "Wait and See" if Servicers Need Liquidity.
What new home buyers need to do now so they can buy, rather than rent, plus Freddie & Fannie updates
How the Stimulus Package Affects Real Estate, and Equity Rich Zip-codes
Housing Was, Is and Will be Strong -DMAR April 2020
Helping SECORCares in April - Feeding, supporting, training for our neighbors to help them succeed.
FHA is NOT Dead; Forbearance is NOT Forgiveness
Coffee Talk - Recapping the Week in Real Estate 03212020
Your Questions Answered Forbearance, Rates, Fannie and Freddie
Pausing - State Trumps County and the Damien Cox Letter
3 Options to Increase Liquidity NOW
Homeownership - Getting Creative in This Time of Disruption.
How to switch from transactional solutions to individualized solutions.
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