Whether you're buying your first home or selling your current home or investing in a property, if your needs are changing and you think you need to move, the decision can be complicated. You may have to take personal or professional considerations into account, and only you can judge the impact these factors should have on your desire to move or invest.
However, there is one category that offers a simple answer. When deciding whether to buy now or wait until next year, the financial aspect of the purchase is easy to assess. You only need to ask yourself two questions:
- I think house values will be higher in a year's time?
- Do I think mortgage rates will be higher in a year's time?
- I think the exchange rate will be the same in a year's time?
From a purely financial point of view, if the answer is "yes" to any question, you should strongly consider buying now. If the answer to all questions is 'yes', you should definitely buy now.
No one can guarantee what house values or mortgage rates will be by the end of this year. Experts, however, seem certain that the answer to two of the above questions is a resounding "yes" and as far as the exchange rate is concerned, no one expects it to fall very sharply, mainly due to the natural volatility of a year with presidential elections. Mortgage rates are expected to go up and the house values have a appreciation while the exchange rate is expected to fall slightly.
What does this mean for you?
Let's see how waiting would affect your financial situation. Here are the assumptions made for this example:
- The experts are right - mortgage rates will be 3.18% at the end of the year
- The experts are right - house values will rise by 5.9%
- You want to buy a house valued at $ 350,000 today
- You decide to give a 30% signal
Here's the financial impact of waiting:
- You pay an extra $ 20,650 for the house
- You need an additional $ 6.195 for an initial payment
- You pay an extra $ 90 / month in mortgage payments (an additional $ 1,080 per year or $32,490 over the 30 years of the mortgage)
- You will lose $ 20,650 with the increase in value of the house
- The fall in the exchange rate won't be enough to compensate for the other factors and even if it falls a little, the down payment in reais will be R$ 15 thousand more
Summary
Any doubts?
Now that you've understood that it doesn't make financial sense to wait to buy your home in Orlando. We can help you understand the behavior of the real estate market and consider investing in vacation homes in Orlando. To make the most of all the tips we've brought you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.
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