How to Benefit from Real Estate Investments When Interest Rates are High
Filed under: Real Estate Market
We were hoping to see significant improvements in interest rates, but the rates continue to stay higher than what we were seeing in the last few years. You might be wondering if you should wait until interest rates come down before you buy a home or investment property.
The truth is that there is always a solution to buy the property that you need. Remember: even if you have to take a higher interest rate now, you always have the possibility of refinancing when the rates come down in the coming years.
Yes, Buying a Home is Still a Good Investment
Even with high interest rates, you can still expect various benefits from buying a home at this time:
- Accommodate Family Needs: When your family is growing, you probably don’t want to wait until rates come down before expanding to the space that you need. Living space matters, especially with children in the house.
- Home Prices: When interest rates go up, you will usually see that home prices go down a little bit. This phenomenon is basic supply-and-demand. Even though you are paying more in interest costs, the sale price is a little bit lower.
- Negotiate Your Deal: Higher interest rates often mean that there are fewer buyers in the market. When you are submitting an offer for a home you want to buy, there is more opportunity for negotiation. Don’t settle! Instead, as for things that you want, such as appraisal fees or closing costs covered by the seller. Or, you might negotiate a cheaper price if repairs are necessary.
Many experts agree that our current real estate market is a bit tricky. But just because we don’t know what will be happening in the future, it doesn’t mean that you should wait to buy a home. If you need to move, then it’s a good idea to upgrade your home when the timing is right for your family.
When you need help navigating this process, reach out to our experienced team. We offer a variety of real estate services in Temecula. Call any time or send me a text: (951) 473-0390. Or, if you prefer you can email me at [email protected].