Indecision Costs
More money has been lost to indecision than was ever lost to making the wrong decision. The economy and the housing market have caused some people to take a “wait and see” position that could cost them in lost opportunities as well as almost certain higher costs in the future.
To illustrate what the opportunity cost might be, let’s compare what the value of the down payment two years from now would be if it was invested in a certificate of deposit, the stock market or used to purchase a home today.
A 3.5% down payment on a $175,000 home is $6,125.00. If it was invested in a CD that would earn 2%, a person would have $6,372 in two years. The earnings would be taxed as ordinary income tax rates. It wouldn't earn much but it would be safe and secure.
The same amount would grow to $7,013 in the stock market if you picked the right stock or fund and it yielded 7%. The earnings would be taxed at the long term capital gains rate. The return could be greater but so is the risk involved.
If this person were to purchase a home today that appreciated 2% in value over the next two years, the equity in the home would grow to $18,769 due to value going up and the unpaid balance going down.
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The question, we all must ask ourselves is “where should our money be invested?” Try Your Best Investment to see the difference it will make based on your price range, down payment and earning rate.
Information brought to you by Sandra Nickel Hat Team Realtors.
Certainly sounds appealing--and you may be tempted to join the ranks of those who have been successful in this field. Be forewarned, however, that like most money-making endeavors, flipping requires time, money, patience and skill.
after all the time and effort you have put into it in previous months. Not to despair, however; it may not be too late to revive—or at least repair---the grassy areas of your landscape. Try following the following steps:
Freddie Mac chief economist, Frank Nothaft, says that affordability, stability and flexibility are the three reasons homebuyers overwhelmingly choose a 30 year term. However, for those who can afford a higher payment, there are three additional reasons to choose a 15 year term: save interest, build equity and retire the debt sooner.
Just as we make an extra effort to watch over young children and the elderly during the summer months, so, too, we need to be aware of the needs of our plants. The following tips should be useful in ensuring enduring greenery through the fall:
One of the hardest lessons for today’s buyers is that writing an offer doesn’t mean that you’ll get the home or even a counter-offer. The low inventory affecting many of the housing markets requires a different strategy to give you the best chance to get the home you want.
