If you have been following my blog and Facebook pages you know I have been telling people “if you are going to sell, sell now before the prices drop even more from the flood of foreclosures starting to hit the market.” What if you want to buy, should you wait or buy now? I have been telling people that are the fence you are better off buying now because we know the cost of purchasing homes is the cheapest they have ever been. We know this and its fact!!! We expect the cost to go up soon and it will go up, the when is what we don’t know.
History has shown us the wealthiest people made their money in down markets. They start building their wealth before the market hits bottom and are at full stride when the market is at its bottom. They do what everyone else isn’t doing. If you are waiting to buy till you heard the headlines that home prices are up, inventory is down, etc. you will be too late.
People won’t take my word for it cause I am a REALTOR and I want you to buy. The fact is I am really just engineer trying to help solve peoples real estate needs. If real estate investing is your game, need a bigger home for the family, smaller home to retire in or a lake house to enjoy with the family this is the time to buy. But like I said don’t take my word for it, John Paulson on Sept 27, 2010 said “If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”
Who is John Paulson?
I think my friends at KCM sum it up the best:
Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?
According to Forbes John Paulson is:
a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.
According to the Wall Street Journal Paulson is:
a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.
What did other financial players think of his statement?
The Wall Street Journal agrees with Paulson:
Ignore the critics. The odds have to be on his side…It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again.
And Forbes said:
As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”
The entire West Michigan area has some of the best selections homes to buy from great investments, homes for flipping, vacation/lake homes, to vacation rentals, etc. Even if you are thinking of buying stop thinking and do it. I truly believe in 10 years from now you will be glad you did.
Bob De Rose
Greenridge Realty, Inc.
3145 Henry St. Ste 200
Muskegon, MI 49441
Phone: (231) 733-7120 fax: (231) 733-7121