Currently 30 year fixed mortgage interest rates are at about 5.000%. I’m pretty sure that we will see interest rates rise this year to the 6.000% range. So I did the math and this is what I found out what could be purchased at Marina Towers.
$1,000.00 per month will get you $186,281.62 in purchase money at 5.000%
$1,000.00 per month will get you $166,791.61 in purchase money at 6.000%
This equates to a net loss of $19,489.99 in purchase power. That’s 10.5%!
I don’t think we will see housing prices drop an additional 10.5% from now. It’s time to get in while the getting is good.
We cannot predict when condo prices at Marina City will hit bottom or if they already have, but most can agree that interest rates are steadily going up from here. Think about how rising interest rates limit your home buying power.
Sunday, February 20, 2011
Sunday, February 13, 2011
Robust rental market on the horizon?
Prospecting for new landlord clients today, I was surprised by the lack of FOR RENT signs on the two & three flats in North Center and Roscoe Village in Chicago. Usually this is a great time to prospect for new rentals because landlords are much more motivated to work with agents to get their places rented.
Perhaps the premise behind this article has something to do with it.
It is looking more and more like the rental market is starting to see a turnaround. I think that is good news for landlords throughout Chicago. This should also inspire those prospective buyers to consider purchasing. With the availability of bargain priced properties and historic low mortgage rates, now is the time.
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