August 20, 2010
To buy or not to buy… that is THE real estate question of the day.
Here are five reasons to buy now and five reasons to not buy now. (I have added, in parentheses, a few Lake Vermilion area market comments.)
Buy now! 1) Interest rates are at record lows. (The future for interest rates is up. The long term advantage of a +/-4% interest rate cannot be overstated.) 2) Some markets have begun to recover. (The Lake Vermilion market has improved from 2009.) 3) High inventory levels mean lots of choices. (In a lakeshore market, higher inventory levels are a very rare Buyer advantage.) 4) Homes are much more affordable than just a year or two ago. (Very true in the Lake Vermilion market.) 5) The cost to rent a home is going up. (Probably true but not a high concern in a recreational property market.)
Do not buy now! 1) Asking prices may continue to drift downward. (Very possible but if we’re not at the bottom, we’re very close. That’s my opinion.) 2) Lower asking prices may be around for awhile. (Not necessarily true for a market with relatively small inventory levels.) 3) You have minimal money for a downpayment. (A valid concern for all real estate purchases.) 4) You are not thinking long term. (A long term plan is lower risk for recreational property.) 5) The current market is unstable. (The Lake Vermilion market is very stable when compared to other areas of the country.)
To read the full article go to this real estate blog.