MiamiRealEstateKing

It’s All About Perspective

In Uncategorized on February 26, 2008 at 12:37 pm

The news reports can be very scary and confusing to say the least. Take a look at some recent headlines:

Foreclosures up 57 percent in the past year-Cape Coral-Fort Myers, Fla., leads U.S. with highest rate of any metro area

Home sales fall to lowest level since 1999 – Median price down nearly 5 percent from a year ago, Realtors report

Key home price index shows record decline – Drop of 8.9 percent in late 2007 is largest in index’s 20-year history

Buyers snap up commercial property – “The report (from Real Capital Analytics), the first to comprehensively track transactions in metropolitan areas worldwide, unearthed $1.04 trillion in office, industrial, hotel, retail, land and apartment sales worldwide in 2007. In all, 114 metropolitan areas logged more than $1 billion in transactions.

South Florida rang up $13.82 billion in commercial sales, placing it just behind Hong Kong, with $14.4 billion, and ahead of Dallas ($13.22 billion), Houston ($13.18 billion) and Philadelphia ($6.14 billion), according to the Feb. 13 report.

“South Florida is the 15th-largest metro in the world for commercial real estate investment,” said Dan Fasulo, managing director of New York-based Real Capital Analytics. “It is one of those very desirable markets, with a plethora of parties that want to invest there.”

Housing construction posts modest gain – But applications for future construction of homes fell in January

Mortgage rates rise to highest level in 7 weeks – Freddie Mac reports 30-year, fixed-rate mortgages averaged 6.04 percent

Dump this house! How to sell your home fast – 5 mistakes anxious sellers make, plus tips to get the highest sticker price

8 reasons why your house is unsellable – Plus, trends that are on the way out and tips to keep your house current

The more one reads, the dizzier one gets. With all this press about real estate, ups and downs, sell, buy, refi…it’s no wonder the market is where it is.

Given an alternate of no more than 3 choices, most people can make a decision and be happy with the results. Zig Ziglar tells a story about beans. I’m not sure exactly how it goes but here’s how I get it. One goes to the supermarket and sees two different cans of beans. One makes a choice, one buys.

Next time, if one were to shop at a different supermarket and were to find 100 different cans of beans, most people would need to spend a lot of time reading labels, determining which loos better, what ingredients one might be comfortable with, prices, etc.

In short, some people may be so overwhelmed, they may even skip buying beans this time around. Too much information! Others, would require a long time reading labels before determining which product to choose.

With all the choices available in the market today, all the news reports, rates increasing, prices falling, inflation gaining a foothold into our bank accounts reducing our downpayment ability and making it yet more difficult for us to decide if we should buy or wait, it’s no wonder things are the way they are. Buyers don’t know what to do with good reason!

But, if one puts it all in perspective, and evaluates the reasons for considering to buy, leaving out all the market and economy issues, the decision may be less daunting.

Assuming your job or business outlook is good consider that, whatever you may have saved is being eaten away by taxes and inflation, interest rates may be on their way up, home prices may be at levels unlikely to be seen again for many years to come, and assuming one is looking to buy our next “home” where we intend to stay for 7-10 years, then it becomes easier to just decide on the neighborhood or building and take the plunge.

Chances are, you are buying at or near bottom now. Trying to time this is fruitless. “Experts” can’t even agree on where our economy is, why should buyers?

Buying with a long-term view however, is the only way to go right now. Enjoy the tax benefits, enjoy your new home, and let everyone else continue to scram out there.

Some day, 7-10 years from now in say, 2018, when you tell your friends and acquaintances what you paid for your home back in 2008 while they decided to wait, they’ll be saying “if I had know that, I’d had bought 3 houses!”, leaving you wondering why you didn’t.

Yet, at least you’d be that much ahead of the game while they’re once again scraming to catch whatever crums they can find in their new seller’s market, at which time of course, you can sell them your house!

Besides, once you make the move, you’ll find yourself watching less stressful news and more entertaining shows. After all, the writers are back!

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