Interest rates often define the real affordability of homes. While tax credits are incentives, low interest rates create long term advantages for homeowners and investors. Today, rates as low as 4% for a 15 year mortgage or a 30 year FHA mortgages 4.65% is unprecedented. While many expected the real estate marketplace to be affected by the end of tax credits, 2010 continues to provide unique opportunities.
Great incentive for 1st time buyers.
Live Urban was very successful in finding homes for our first time clients with the tax credit program. While the program has come to a close, the advantage of home ownership over renting remains strong, especially with stabilizing prices and significantly lower interest rates. Mortgage interest remains a tax deduction annually. Economic forces will inevitably force rates upward. NOW is the time to take advantage of motivated sellers, low rates, and an improving marketplace.
Amazing opportunities for investors
As economic news proves how sensitive stock prices are to global concerns, real estate investment is driven by local influences. Denver is one of the fastest improving real estate markets. For the past few months, we have reported increases in actual sales figures as the number of sales increase over 2009. In short, home prices, still free falling in too many cities are rising in Denver. The stability of the Denver market creates greater opportunities for casual investors to purchase and lease properties with a positive cash flow each month or fix and flip distressed properties with fewer days on the market. For a sample of investment opportunities, please email me at martin@liveurbandenver.com
Buying your dream home
For three years, home owners found themselves frustrated that they could not take advantage of amazing prices on their dream home since their own homes lost significant equity. Upside down was all too often associated with home ownership and the best strategy was to stay and wait out the storm. All too often, all you could do is watch others take advantage of unprecedented prices. Now that prices are moving up and rates are falling, it is a great time to revisit what your home will bring in an improving market. This service is offered at no cost to you by your Live Urban Real Estate agent.
Bottom line. Interest rates, more than tax credits, create long term opportunities for homeowners and investors. As market prices stabilize and return to an equity position, take time to review your options. Do not expect rates to stabilize in an unstable economy. The advantage exists now.
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