Phil's Blog

Forbes: Buy Now or Pay More Later?

October 22, 2013
Forbes: Buy Now or Pay More Later?
Posted: 22 Oct 2013 04:00 AM PDT
Time is moneyEven though no one at KCM actively lists or sells real estate, some of our readers believe that there is an inherent basis toward the real estate community in our writing. For that reason, we want to quote a third party source today. Forbes, in their online edition last week, spoke to the importance of buying a home now rather than waiting.
The article, Should You Buy a Home Now or Pay More Later?, explains:
“With mortgage rates creeping up toward 5% as 2013 draws to a close, potential home buyers have some decisions to make — and soon.
The danger for potential homebuyers isn’t that mortgage rates are nearing 5.00%; the real threat is that rates could go higher, to 5.50% or even 6.00% in 2014.”
The article spells out the financials consequences a buyer would face by waiting. ($67,746 on a $300,000 mortgage).
They gone on to identify four things a buyer should take into consideration before delaying a decision to purchase.
  1. Rates will likely rise — and soon with 5% interest rates right around the corner.
  2. The Federal Reserve will stop “tapering” causing rates to return to historically normal levels (6-7%).
  3. Home values are rising
  4. The autumn buying season is underrated “as you can take advantage of year-end tax breaks and the fall weather makes it an ideal time to move”.
Bottom Line
The financial advice Forbes gave to their readers was rather simple. Buy now or pay more later!!
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