“Wait vs Rate” – The Great Debate!

Have you noticed your clients “sitting on a pole” waiting for the tide to go out?  Sure – the correct statement would be “sitting on the fence” waiting for prices to continue to fall? Houston area Realtors representing buyers in the Houston Texas market are well aware of the effects that waiting to purchase will have on the housing recovery throughout Texas.

But – the real question is whether home buyers understand the “true cost” of money and how waiting to purchase a home will negatively impact their overall “wealth position” in the long run as interest rates increase?  

It is true that a 1% increase in interest rates negates a 10% decrease in the price of the home as the payment will be the same each month today versus waiting for home prices to fall (“click” on Chart below and view highlight in yellow).

 

Even if prices decrease 10% and interest rates increase by as little as ¼%, you lose!  Why miss out? The cost to wait will end up costing so much more in the end – thus negatively impacting your family’s “wealth position” as you amortize your mortgage over a 15, 20 or 30 year period!

The point is clear – Now is the time to buy!  Rates are expected to go up and prices are at or almost at their bottom.  Rental prices are increasing.  In 78% of the Country is it cheaper to own than rent.  It’s a buyers’ market but deals won’t last.

If you don’t believe the numbers above, check out the following publications (print date) that have recently published articles to substantiate the above:

Well informed Realtors understand the great impact on “Wait vs Rate” and have shared this information with their buyers. Now is the time to buy!

Are your sellers or buyers in need of “free” mortgage consulting prior to selling or buying? Be sure to call our office at (713) 528-0333. Get out there!

New Season – Be a “Go-Giver”!

Seasons change (Winter, Spring, Summer, Fall) and each season brings new opportunity. If you are like me, you are probably tired of all the media talk about the “state of the economy” – one day inflation, the next day recession — and the remix of the Great Depression!

I believe this “state” to be optional and I opt not to participate. If you look back in history, it was during challenging times that resourceful people found incredible opportunity and took advantage of it. It’s a new season.

It has been said for centuries that you must be a “go-getter” to be successful. I am all for it! However, when being a “go-getter” is for one’s own selfish desire for — or pursuit of money, wealth, power or possessions — especially when this denies the same good to others — the tangible result is greed. Greed is what led to and leading to the fall of many one-time great Corporations and the imprisonment of their CEO’s, CFO’s and anyone else that thought “titles” were important in our generation.

It’s a new season and time for a change – instead of being a “go-getter”; consider the incredible feeling and powerful results of being a “Go-Giver”!

This is a great time in life if you know how to use it. Now is the time to reclaim history and to return to the foundational true reason for being. Be a “Go-Giver”!

Offer help to others and never take advantage of them. It is not what you get, it is what you give that returns the most. Give more than you get. Give more than expected. The more you help others, the more you will prosper in all areas of life.

It takes more energy to “get” than it does to “give” because in “getting” you are continuously challenged with the next step it takes to “get” and the cost to “get” it!

In “giving” you are always presented with opportunities to give — it cost you less and returns so much more!

Be a “Go-Giver”!