There are lots of books out there that will tell you how to calculate ROI (return on investment) or capitalization rates. I am not an investment adviser, attorney or accountant....just a real estate agent working with buyers and sellers in Brevard County, Florida.
The decision to purchase a house or condo is a major decision which adds considerable obligations. A common sense approach to the decision to purchase a house or condo involves considering the right factors. [By the way, "want" is not the major factor.]
Real estate prices are down from the highs of several years ago. This is in part because the inventory of short sales and REO/foreclosure properties remains high. [When about 25% of all houses and condos on the market in Brevard County, Florida are distressed properties, prices will be depressed even further.]
A stable employment history (and outlook for continued employment), savings for down payment/closing expenses, the ability to live on a budget are all part of what I consider the "means" to buy a house or condo.
The cost of borrowing (interest rates) has continued its drop and is now at historical lows at about 4.90% , down from 4.99% last week on 30 year fix rate loans.
When all is taken together price, means and opportunity, it makes sense to consider a real estate purchase.
In Brevard County, Florida, if you are ready to make the decision, call me to discuss how I can assist you in the process.
©Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida.
