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Creating Wealth through Real Estate: Moving On Up

Over the last couple of days, we have talked about real estate as an investment, financing costs (interest rates) and gave you reasons to buy now instead of waiting. It is important that we realize that this does not apply solely to the first time home buyer.

The opportunity that exists in real estate today is there for everyone.

However, the family that already owns a home might be looking at the fact that they can not get the same price for their house today that they could a few years ago. And that may cause them to believe that they can’t move-up to the home of their dreams. Actually, the opposite is true. This is the best chance a family has to buy up into the home that makes sense for them right now.

We must realize that whatever percentage of value we lost on our house was probably lost on our dream home. Let’s use the table below to clarify this point. (I understand that the prices you are dealing with will probably be different.  Let’s think about the concept.)

Move Up 1

The family actually saves $20,000 making the move today. Plus, if you go into contract and close within the guidelines of the Home Buyer’s Tax Credit, you receive an additional $6,500!!

And, you pay a lower interest rate on the mortgage.

But, that’s not all!! If we project into the future when prices will again begin to appreciate, we can see an additional impact on a family’s net worth. Let’s look at the table below:

Move Up 2

With the additional equity increase the larger home provides, the family net worth in total increases by over $42,000. Plug in the numbers that apply to your house and the home you are longing to buy and see what the bottom line turns out to be for you.

That is how wealth is built in this country. By purchasing real estate at the right time, at the right price and at the right terms.

Go out and find your family’s dream house and buy it! Ten years from now, you will be glad you did!

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4 replies
  1. Amaury Hernandez
    Amaury Hernandez says:

    We are a National Direct Lender and we’ve had our best year ever in 2009. There is plenty of money to be lent and it all comes down to having the right team in place to help clients realize their dream of homeownership.


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