Watch the video below to see my message to Austin Home Buyers facing a competitive market. Austin is still the top place to buy a home. Forbes magazine lists the Austin real estate market as a great investment:
Watch this video to see who I recommend for your mortgage qualification to purchase or even to refinance.
Recently Jean Chatzky shared her financial advice for military members on the Today Show: http://www.jeanchatzky.com/category/nbc-todayshow. I was once again disappointed that home ownership is being discouraged by the media. While I think it’s wonderful that Ms. Chatzky is providing free financial advice to military members and veterans through Operation Money, I do not understand how she can advise young military members to “save for retirement” before saving for a house.
She justifies her advice by saying that active members move every two years. And, I can certainly understand why anyone not planning to stay longer than two years in a city might choose to rent. Still, I would consult a local real estate agent before I listened to non-regional advice about a clearly regional topic.
Depending on the market, it may be far preferable to buy than to rent because the monthly savings could far outweigh any sales costs incurred within two years. Plus, if rents are generally high in an area, a military member could choose to rent out his house instead of selling in two years and possibly even make a monthly profit.
There are so many pluses to buying a home, I fail to understand why the media continues to discourage home ownership. Not only do you often have monthly savings but you can build equity in a real asset as opposed to a retirement asset, which is not only untouchable while you are below retirement age but is most often invested in paper stocks in companies you cannot control. At least you can control a physical asset, such as a house.
Over the years, my family, my parent’s family and my husband’s family have all made plenty of money buying and selling houses as home owners. We have rented out houses in down markets when we couldn’t sell and even when we had to sell in a down market, we never lost money. And, all of our family members have gained wealth over time in real estate.
If you are a military member, please don’t take advice on housing from the national media. Find an experienced, local real estate agent and find out whether or not it’s a good time to buy a home in the area you will be living in.
Should you buy or rent a home in Austin Texas? It is almost always cheaper to buy a home in Austin than to rent.
Monthly rent is typically higher than your combined monthly payment on a house mortgage (including insurance and property taxes). This is especially true if you want to live in a single family, detached house. If you are willing to live in an apartment, you may save a few hundred per month by compromising on privacy and size.
Buyers can find many homes to choose from in areas close in to Central Austin for $200,000 or less. With good credit and a modest down payment of $7000 or less, your total monthly payment could be well below $1600 per month. It is difficult to find any rental home in the Austin area for less than that amount.
A home purchase in the Austin area can be a great investment and a monthly money saver IF you have an experienced agent to help you buy. Contact me at 512-266-2606. I love guiding home buyers to purchase a residence that is not only a great place to live but also a safe investment.
Even if your monthly payment would be higher than rent, the example below shows how, over time, buying is still better than throwing away money on rent.
Buy vs. Rent Comparison
The chart below shows a cost comparison for a renter and a homeowner over a 7 year period.
The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
With the tax savings of home ownership, the homeowner’s payment is less than the rental payment after 3 years
|For the week of Nov 17, 2014 — Vol. 12, Issue 46|
|In This Issue…|
|Last Week in Review: The Bond markets were closed Tuesday in honor of Veterans Day, while the rest of the week was quiet with only a handful of economic reports on the calendar.Forecast for the Week: The Fed minutes could cause volatility. Plus, key housing reports, and is inflation still tame?
View: Check out these five tips that can help yield more productive and meaningful work relationships.
|Last Week in Review|
|“Home of the brave.” The Bond markets were closed on Tuesday in honor of Veterans Day, and the brave men and women who have served and sacrificed to protect and preserve our great nation. The economic calendar was quiet the rest of the week, but there are some key highlights to note.In the labor sector, Weekly Initial Jobless Claims came in at 290,000. Claims have remained below 300,000 for nine straight weeks—a feat that has not occurred since 2000. In addition, claims are 20 percent lower than they were this time one year ago. However, all is not golden as 18.2 million Americans still say they can’t find a full-time job. This is a big number, considering that we’re five years into an economic recovery. While the labor sector is improving, there is still more work needed ahead.
Oil prices continue to drift lower, reaching levels not seen since October 2011. This slide lower has put extra cash in consumers’ pockets just in time for the holiday shopping season, and it helped Retail Sales in October bounce back from the negative numbers seen in September. However, all-time price highs in meat, dairy and produce could tap into these savings at the pump.
Looking ahead, housing data is abundant in the coming week. And while the hot housing numbers from 2013 have cooled a bit this year, recent data suggest that the housing recovery is still intact. Existing Home Sales in September touched their highest level in a year, while New Home Sales hit a six-year high. These will be important numbers to watch as we look ahead to the housing sector, and whether its recovery continues, next year.
The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.
|Forecast for the Week|
|The Mortgage Market Guide View…
|5 Tips for Providing Constructive FeedbackConstructive feedback with colleagues and partners can yield more productive and meaningful work relationships. The next time something isn’t quite working well in a process or on a project, consider these five steps that can help.
1. Tie to a goal
2. Ask permission
3. Identify specific behavior
4. Offer concrete action steps
5. Show support
The following example illustrates how all five steps work together:
On a final note, emails lack non-verbal cues. Give feedback face-to-face or over the phone, so the recipient hears your voice or sees your facial expression to minimize reading into your message.
Sources: forbes.com, smallbusinesschron.com
Economic Calendar for the Week of November 17 – November 21
What is the Option Fee in Texas Real Estate?
What is Earnest Money? Video explanation by Austin Realtor Dianne Bartlett
The Best Way to Find a Home to Buy in Austin. Watch this video for tips on the most effective way to find and buy a home in the Austin area.
Lake Travis Waterfront Homes with Boat Docks – Video regarding whether Lake Travis waterfront homes for sale can have boat docks or not. What buyers need to know when considering a Lake Travis waterfront property.
How much should a buyer offer on an Austin home? Watch this video to see my recommendations.