Whether you are 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 what impact these factors should have on your desire to move or invest.
However, there is one category that offers a simple answer. When deciding to buy now or wait until next year, the financial aspect of the purchase is easy to evaluate. You only need to ask yourself two questions:
- I think the house values will be higher a year from now?
- I think mortgage rates will be higher a year from now?
- 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 questionyou should strongly consider buying now. If the answer to all questions is 'yes', you should definitely buy now.
Nobody can guarantee what home 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 with regard to the exchange rate no one expects a very sharp drop, mainly because of the natural volatility of a year with presidential elections. Mortgage rates are expected to go up and the values of the houses have a valuation The exchange rate is expected to drop a little.
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 - home values will appreciate by 5.9%
- You want to buy a house valued at $ 350,000 today
- You decide to give a 30% signal
Here is the financial impact of waiting:
- You pay $ 20,650 extra for the house
- You need an additional $ 6,195 for an initial payment
- You pay an extra $ 90 / month on the mortgage payment (an additional $ 1,080 per year or $32,490 over the 30 years of the mortgage)
- You will stop earning $ 20,650 with the house value increase
- The fall of the exchange rate will not 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
There are many things to consider when buying a home. However, from a purely financial point of view, if you find a house that meets your needs, buying now makes much more sense than buying next year.
To know the forecast for the exchange rate, click here
Are you in doubt?
Now that you understand that it makes no 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 take advantage of all the tips we have brought to you and to go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you with any questions you may have about investing in Florida.
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