IS NOW A GOOD TIME TO BUY SARASOTA REAL ESTATE? YES, EVEN IF PRICES CONTINUE TO DROP!
Posted by Bryan Guentner on Friday, September 3rd, 2010 at 2:55pm.And here is why.....I know prices are still dropping in some areas, but is this a good time to buy? The answer is a resounding YES. If you bought a $400,000 dollar home (for the purpose of illustration obtained a $320,000 loan) and that house drops 10% in the next year, the math is easy. You just lost $40,000. BUT - and this is a big BUT - if you obtained a loan today for that house at 4.25% and if that same loan in one year costs 6%, then the difference in payment is a lot LESS if you buy the house now. ($320,000 @ 4.25% = $1574 / $320,000 @ 6% = $1918) for a difference of $344 every month. Over 30 years, that difference is a whopping $123,840! One thing we have been assured of is that interest rates have to and eventually will be going up as the economy improves.
Don't forget to contact Re/Max Platinum Realty at 941-929-9090 for your needs in Sarasota real estate, as well as your needs for Siesta Key real estate and Casey Key real estate.
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