Buying real estate feels more complex than ever in today’s market. However, investing in real estate or becoming a homebuyer is still top of mind for many people. With higher interest rates, an increasingly competitive housing market, and the rising popularity of investing in a secondary property, Modearn™ Advisors Jon Wingent and Kevin Rex are here to decode our complicated real estate landscape and answer tough questions.
*Here are some key takeaways from their conversation:*
• Current interest rates seem high due to a period of very low rates, but historically, they are not unprecedented.
• Kevin and Jon agree the affordability of a home is crucial, suggesting that only about 30% of monthly take-home pay should go towards mortgage payments. However, potential homeowners should remember they can refinance their mortgages if/when interest rates drop.
• When buying a home, focus on non-negotiable features like kitchens and bathrooms, as they are the most expensive to renovate.
• Renting may be necessary in competitive markets, but buying even a less-than-dream home can be beneficial for building equity.
• Jon and Kevin encourage listeners to focus on purchasing a primary home first before considering rental properties. While rental properties can generate income, they are active investments requiring responsibility and effort.
• Potential buyers should prepare financially, get pre-approved, and work with a trustworthy buying agent to increase their chances of a smooth transaction.
*Keep watching towards the end to catch our “This or That” segment where Kevin and Joe ask these rapid fire questions to each other:*
• Stay in the home you have or move to a new home?
• As a landlord, would you rather have a long-term tenant or rent your property out as an Airbnb?
• Build your dream home or buy a dream home?
• Earthquake or flood damage?
