Here are three quick links to great blog posts I found over the last few days (links via CoRE). While I like to write my own content, I have to give credit to some great, bold writers whose blog posts I generally agree with (or at least I think deserve a look by my readers). Enjoy…
First up is a killer article by Jim Wang at Bargaineering.com telling regular folks that their personal home is NOT an investment, be sure to read through the comments for a “robust” debate:
I knew someone who owned four rental properties, all bought on ARMs, and was making a “killing” on the rents and appreciation. I knew someone else who was looking at his paper riches and marveling at how wonderful home ownership was.
Then the housing market stalled. ARMs reset. People were in rough shape. Those who overextended learned something the prudent have always understood, as much as your home is a great place, it’s not an investment.
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As a big Dave Ramsey fan, it’s awfully hard for me to fully recommend the ideas put forth in the following post, but there “can” be some justification, in some folks personal situations, for utilizing an ARM (Adjustable Rate Mortgage) in the financing of a home.
eSave Mortgage posts that since adjustable rates are back to well better than fixed rate mortgages, you may be able to save once again, but only if you’re prepared for the risks involved in an adjustable rate mortgage…
At least one thing is back to normal in the mortgage markets — it’s no longer cheaper to go with a fixed rate mortgage than an ARM.
As reported by Freddie Mac, a conforming 5-year ARM is priced a half-percent lower than a comparable 30-year fixed.
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Last up a great article by a pair of Maryland Realtors, Jeanette and Bruce Lemeiux who tell the story of some sellers upset by the lack of a sale on their property, originally listed for $1.1 Million. They were quite confident initially that they would have a quick, successful sale because a very similar home in the same neighborhood had sold last year for $1.125 Million. Problem is, this year’s market is NOT last year’s market…
Buyers look at your home in the context of other homes on the market. Past sales do matter, but only to a point. In a market with a lot of inventory, a buyer will be attracted to the best values — the homes in the best condition with the best price.
The real irony here is that these Maryland Realtors are talking about themselves and the troubles they had in selling their own home.
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I am definitely bookmarking this page and sharing it with my friends.