So you finally got in, but the rate is five, five and a half, six, seven. The down payment assistance is seven, seven and a half. And all of a sudden, it doesn't seem fair, but it's still locked in, right? It's still your mortgage payment that you can count on that isn't going to go up any further. And if anything go down because interest rates will go down. But when, so housing, it's a lock against inflation.
I can rent out a room because there are a lot of people who can't afford to buy. Could I give them access? I just had to purchase a home. I used a 7% interest rate. My payment's a little bit tighter than I would've liked. I'm going to rent out rooms, or I'm going to lock off the basement that might have stairs, and I can create a little kitchenette and create a little lounge area.
Some people are, whether they're doing a hobby, whether they're laying low, they're not going traveling, they just need extra space to do their craft, whatever that is. Or storage, maybe they had to downsize. I've got friends that rent out their garages, right? Can we get creative to offset?
You can do that with a home. You can do that with something you own. Not only can you make it your own, but you can also build it out; you can finish it out. You can create a space where you can then create income. The home has a multitude of positives. It has two negatives right now. The interest rates today and home price is going up. Let's talk about those two interest rates today. Where do I think interest rates are going to go?
I think we are going to have a volatile last quarter and could be a volatile first quarter of 2023. Many of the economists in the large banks are all thinking that we have not entered into a recession yet. That we might be in one today, but we will start to see a recession where people aren't traveling, aren't going out to eat, aren't paying for services, aren't still spending, and our consumer spending is still up. So if people stop spending, we will head into a recession. If you go back historically, during recessionary periods, interest rates go down, and in fact, homes appreciate minus one back in 1960 when they didn't. I'm not talking about inflation adjusted, I'm talking about HPI home price indexes appreciate in recessionary periods because those interest rates come down.
Where do I think interest rates are going to go? Listen to this episode of The Double Comma Club, "Using Current Market Volatility To Your Advantage" to find out.
DMAR Feb 2022 - Will Mortgage Rates Break 4% in 2022?
Lending: Reverse Mortgage Style
When should you back out of a deal?
Give Your Buyers an Edge in a Competitive Market
The Advantages to Renting
She Started a Business with the Equity in Her Homes
Increasing Your Dollar Per Hour #TNBTCO
Leveraging Real Estate to Build Your Investment Empire
What is a lender letter and why do you need it?
Loan Documents Explained
Plan your estate so you aren‘t the juicy bar story some attorney tells
Short Term Rentals Made Logical and Lucrative
What it Takes to Purchase a Home
The Next Big Thing - Rueth, Kruger, Soto, Alba, Veden January 20 - 21 2022
DMAR Nov 2021 - The Market Is Slowing. So Why Are You Exhausted?
Maximizing Your Investment Properties - the Bedroom to Bathroom to Square Footage Ratio
The Next Big Thing - A Real Estate Experience January 20 - 21 2022
How to Buy and Sell Your Home at the Same Time
The Cost of Waiting in Real Estate
How can you capitalize on Real Estate to Help Pay for College
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Aligned Money Show
Dubai Property Podcast
IBKR Podcasts
The Ramsey Show
The Clark Howard Podcast