Home: It means more now than ever
We are spending more time at home now than we ever have before. We are cooking more meals and dabbling with sourdough. Heck, even the meals we didn't cook ourselves are still eaten at home after the Uber Eats gal drops it off on your doorstep. Many are working from home and realizing the importance of the extra bedroom as an office. We have partnered with https://livemodal.com to offer a backyard office solution if the noise and distractions from home schooling kids and needy puppies has got you underperforming. However, purchasing a different property that better fits your needs is a great plan too.
2. Interest Rates
For years you have heard about historically low interest rates. It's true, they have been below the historical average of 5.59% for a number of years, but we are seeing rates in the 2% range often these days. (http://www.freddiemac.com/pmms/pmms30.html ) Will waiting to purchase or Refi get you a better rate? Actually, the opposite. December 1st we will see a 0.5% bump, unless it is delayed again. Your buying power at these rates is what is driving the price jump we see, but your payment will be about the same as with a higher rate at a lower price. To take a peek into what rate you could get, head over to....
3. Location: Yeah, it's a cliché.
Everyone knows real estate is about location. In Utah, prices vary 30% depending on where you are in the Valley, or 80% sometimes when comparing to Park City. But this time, it is a nation wide location situation. Utah is where everyone wants to be. From New York City, to San Fransisco, the country is on the move and over 10% of these "work from anywhere" folks are landing in our State. As a local, you have the advantage to see homes in person, when they come to the market. If you are renting, our suggestion is to buy ANYTHING. If you are upsizing or downsizing, let's create a plan to get you the perfect property, before one of the East Coasters takes it away.
4. Boredom inspired renovation
You can't go to a movie theater, so why not build your own! And if you are going to put time and money into a project, why not add value to your home. Renters missed out on quarantine projects as an equity building boredom diversion. Please don't get in over your head. We recommend using professionals for the more technical projects, but from patios to paint, have fun making your house more valuable.
Volatility has been the name of the game for assets for the last 40 years. Bitcoin, stocks, classic cars, fine art, whiskey, etc have all been trending upward, but fluctuate violently. If you remove the 2007-2010 Subprime Mortgage Crisis (which was caused by insane lending practices in hindsight), real estate has seen a steady increase. On top of that, you can get a loan to pay for it; try that with stocks (basically what caused the 1929 crash, buying on margin) And, unlike other investments, you can use a property without diminishing the value.
6. Bonus: everything else
You can grow your own food, rent out a room, get a puppy without notifying your land lord, ensure your kid is in the best school district, tax advantages, endless other advantages. What do you think? What did we leave out? Questions? Comment below!