I’m Finding it Hard Not to be a Contrarian Bull.


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Prices have corrected considerably since the housing bubble began to burst five years ago making home values in many areas cheap. In places where prices have dropped the furthest, there are deals almost everywhere you look.

In most places owning a home is much cheaper than renting now. Foreclosures and short sales continue to be abundant. Coupled with the most recent and unfortunate natural disasters across the country there are many displaced folks who now find themselves renting. This demand will create a rise in rent rates.

While rents rise, thirty year conforming home loans are going as low as 4.3%. And don’t forget about the tax break on the interest. But these low interest loans will not last forever and forecasters predict Fed rates will jump up dramatically before the end of the year.

Consider that landlords are now using new metrics for calculating what they will require in rent. A landlord who owns a $100,000 rental property expects their annual rent to be at least 9% of the cost of the home, or $750 a month. But, the monthly mortgage payment for the same $100,000 home at 5% will be roughly $540 a month on a thirty year note.

All of this is great news for owner occupants and real estate investors alike. Real estate investors are finding incredible deals all around while home buyers will probably never see the likes of these low interest rates again making this the perfect time to buy!
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Rob Caldwell is a Development Agent with HomeVestors® of America and is based in Lake Lure, North Carolina. Rob’s role is to recruit, train and support HomeVestors franchise offices in North and South Carolina. Since 2004 Rob has bought 100’s of houses through the “We Buy Ugly Houses®” franchise system. If you are interested in a HomeVestors franchise in the Carolinas, contact Rob today! Rob.Caldwell@homevestors.com or 828-625-5836.

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