The best reasons to purchase a home today:


1). Home prices are still lower than 2007.  Real estate prices peaked in 2007.  Then real estate experienced a market correction lasting through January 2012.  We still have a good combination of home prices lower than 8 years ago and low interest rates. 

2). Rents are very high today.  2 bedroom apartments average $1,800 per month.  3 bedroom houses average $2,600 per month.  4 bedroom houses are $3,000 per month and more!  Rent is NOT tax deductible but mortgage interest and property taxes are.  With current home prices and interest rates today, it is common to see an after tax write-off monthly payment similar to a rent payment for the same home.  Plus homeowners receive additional benefits.  You have control of your living environment, not the landlord.  When you upgrade or improve your home, you will receive the added value instead of the landlord.  Appreciation and control of your living environment make home ownership the American Dream.

3). 2018 is a great time to move up.  Your family may have outgrown your current home; or maybe you've wanted to move to a different area or neighborhood.  Rather than stay another year or two in your current house, you now have the best opportunity in the past few years to secure the home you really want – and at extremely low interest rates. 

4). Orange County real estate is a solid investment.  Home ownership is the American Dream and Orange County is the best place to live it.  Orange County enjoys a Mediterranean climate.  This is the most desirable climate on earth and only 5% of the earth's surface offers it.  Orange County not only has the most desirable climate, it also sits on the Pacific Rim in the United States of America.  Our unique location in the world provides the best combination of climate, political stability, and economic trade opportunity.  We are surrounded by 6 regional and international airports, and we are next door to one of the largest shipping ports in the world.  People from other parts of the country and all over the world want to live here.  They all see the O.C. on television and in magazines, and everyone in the world knows where Disneyland is.  Living in Orange County means you can surf in the ocean and snow ski in the mountains on the same day; and still enjoy your hot tub at home that night.  We are less than 90 minutes from Hollywood, San Diego, the Mountains, and the Desert - And of course the beautiful Pacific Ocean is in our backyard.  Demand for homes in Orange County will continue to exceed supply in the future.  You are in the right place at the right time and you have a short window of opportunity to take advantage of the remaining price correction in our market coupled with some of the lowest interest rates in history.

5). Moving up increases your family's wealth.  If you found out you can have the home you really want for your family, and it won't cost you any more than your current home; would you make the move?  Of course you would.  If we look at the last market cycle, 1990 was the top of the market for Orange County real estate prices.  In 1990, the average home price in Orange County was around $250,000.  In retrospect, this would have been considered the absolute worst time to purchase an Orange County home.  Yet just 15 years later in 2005, that same home was now valued at $650,000.  And remember, that was the worst real estate purchase you could have made any time in the previous 60 years.  Yet those home buyers still made $400,000 in profit.  I am sure most people wish their other investments could match the returns of even this worst-case real estate purchase.

Let's look at a move up example.  Let's say you currently own a $600,000 home and would like to move up 50% more to a $900,000 home.  Over the past 60 years, real estate prices in the area have doubled on average every 10 years.  When homes prices double again, your old $600,000 house will be worth $1,200,000, which is great. But your new $900,000 home will be worth $1,800,000.  This move increases your family's net worth by $600,000 more! You get paid an extra $600,000 for living in the better home your family prefers.

6). Real estate makes you money.  At the top of the last real estate cycle in 1990 a 20% down payment for the average priced home was $50,000.  Even though 1990 was the worst time to buy a home, by 2005 the average home price had risen by $400,000 earning that 1990 home buyer an 800% return on their initial $50,000 investment.  That is quite a return on investment for a "bad buy".

To put this profit return in perspective; the investment industry considers a 100% return on investment every 7 years as being very good.  The worst Orange County home purchase you could make in the past 60 years was twice as good as this high standard.  Oh, and by the way; when you sell the other investment, you pay over 30% in capital gains tax on the profit in California.  With real estate; you and your spouse can sell and take up to $500,000 profit tax free just for living in your home the past two years.  Imagine if your home purchase wasn't the worst buy - Just average.  How good can your returns be?

7). You have to live somewhere.  Why not live in the home you really want?  If your current home conditions could be better, you should probably consider trading into a better home for your family.  You may be concerned the home you want will cost too much each month.  But the truth is you are already paying to live in your current home.  When considering a move up, the difference between your current payment and the new payment is what´s important to determine if this move is right for you.  And this difference is reduced even further by the additional tax write off you will receive.  This means the government often pays 35% to 40% of your additional new payment.  You may be a lot closer than you think to the dream home you really want for your family.

8). My Guarantee. A major question when buying a home is:  Will I regret purchasing my home now?  If you plan to keep your new home just 3 years from your purchase date today; market history tells us your new home purchase will be a financial success.  But I even go a step further.  I personally price guarantee every home buyer I represent.  When you are ready to sell; I guarantee your property will sell for at least the original purchase price plus selling costs; or I will reduce the listing commission to zero if necessary to help insure the return of your original investment.  My guarantee is good whether you keep your home one day, a year, or 10 years.

When working with our clients; we individually evaluate each situation and often find we can help a family move to the home they want - And improve their financial position at the same time.  We will help you analyze the difference in monthly payment between your current home and the home you want.  Just give me a call at 800-944-2441.  I will share the latest information on our real estate market and how you can profit by purchasing your home today.  And as always; our conversations are confidential.



Copyrighted 04/12/2018 reprint in whole or part by permission only



Cary Hairabedian
Cary Hairabedian
Associate