First Time Buyers Beware! You might accidentally set yourself up for long term financial success!?!


First Time Buyers Beware! You might accidentally set yourself up for long term financial success!?!
By Scott Rogers • September 15, 2011
Frank is renting a townhome in Avalon Woods, and is paying $875 per month for the privilege to do so. He has thought about buying a home, but assumes he'd have to pay quite a bit more per month. Well, maybe not! If Frank were to buy a townhome in Avalon Woods (or Liberty Square, Beacon Hill, Harmony Heights, etc) he might pay around $140,000 for the townhouse --- or even less! Assuming $140,000, here is an illustration of what Frank's mortgage payment might look like, with a ridiculously low rate of 3.875% (which one of my clients was quoted yesterday).... Frank will still have to pay $40/month for the Property Owners Association on top of this mortgage payment, but his monthly housing cost is now going to be $775. Wait a minute.......Frank is going to move from paying $875 in rent to paying $775 for a mortgage payment? How could this be? extraordinarily low interest rates more townhouse sellers than buyers, driving prices down The great news here is that if Frank decides he wants to move on after five years, he would have a fantastic opportunity to keep the townhouse and rent it. After all, his monthly payment will still be right around $775, and his rental income will probably have increased to $900 or $925. What are you waiting for? If you're a potential first time buyer, let's talk through your situation to see if a home purchase might fit into your short term (housing) and long term (investment) plans. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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