{"id":17300,"date":"2022-01-26T00:47:35","date_gmt":"2022-01-26T00:47:35","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=17300"},"modified":"2022-01-25T20:49:30","modified_gmt":"2022-01-25T20:49:30","slug":"i-wish-i-knew-then","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2022\/01\/26\/i-wish-i-knew-then\/","title":{"rendered":"I WISH I KNEW THEN\u2026"},"content":{"rendered":"

BY ANNA & MICHELLE<\/span><\/em><\/p>\n

W<\/span>e have all heard this expression that implies that had a person known earlier in life what they know now, they would have done things differently.\u00a0The subject possibilities are endless.\u00a0While no one has a crystal ball to see into the future, it may be possible to learn from people who have experienced similar situations.<\/span><\/p>\n

In the late \u201960s, mortgage rates hit 8.5% but before the decade had finished, the rates had come down to 7% where they stayed for some time.\u00a0Homeowners who purchased at the higher rate could buy a larger, more expensive home for the same payment if they could get out from under the obligation of their existing mortgage.<\/span><\/p>\n

FHA and VA mortgages, up until the late \u201980s, could be assumed by anyone, regardless of credit worthiness.\u00a0Since these homes were purchased one or two years earlier, the sellers didn\u2019t really have much equity in them, and many homeowners were willing to \u201cgive\u201d them to investors so they could qualify on a new, lower-rate mortgage.<\/span><\/p>\n

It was a fantastic opportunity for investors who could afford the negative cash flow because the homes wouldn\u2019t rent for the payment.\u00a0As the \u201970s economy started heating up, so did inflation.\u00a0Most people consider inflation an undesirable thing, but for people who owned rental property, it meant the values were going up and so were the rents.<\/span><\/p>\n

Soon, the rentals no longer had negative cash flows and the investments turned the corner.\u00a0If you talk to investors who purchased those homes during that period, you\u2019ll very likely hear, \u201cI should have bought more of them.\u201d<\/span><\/p>\n

If we could fast forward into the future to see how people will be talking about the period we\u2019re currently in, we might see an even greater opportunity in our present time.\u00a0Interest and mortgage rates have been on a downward trend for 30 years. In the past 10 years, they hit an historic low.\u00a0They are trending up currently and it appears they will continue to do so.<\/span><\/p>\n

Homes are in short supply, which has caused the prices to go up.\u00a0Builders haven\u2019t returned to the number of new units needed to meet demand and that has been going on for over 10 years.\u00a0Even when the supply does increase, it will take a long time to catch up with demand.<\/span><\/p>\n

Combine that with supply chain shortages due to the pandemic and prices look like they are unaffordable.\u00a0Many Millennials and some Gen Xers believe the \u201cwindow of opportunity\u201d has closed.\u00a0<\/span><\/p>\n

For tenants, rents are continuing to increase due to the same causes that home prices are increasing.\u00a0Buyers, by acting now, can lock in their mortgage rate and the purchase price of the home.\u00a0As prices continue to increase and the amortization of the mortgage pays down the unpaid balance, homeowners\u2019 equity increases and so does their net worth.<\/span><\/p>\n

Unfortunately for tenants, the rents will continue to rise, along with prices that will make it more difficult in the future to purchase.\u00a0Their rent is used to pay the landlord\u2019s mortgage, who benefits in the principal reduction for each payment made.<\/span><\/p>\n

The market is changing and people who don\u2019t own a home currently must find a way to buy one.\u00a0The longer they wait, the harder it will be to buy one.<\/span><\/p>\n

People wanting to purchase a home in today\u2019s market must educate themselves with facts and not hearsay.\u00a0There are all sorts of programs available to address low down payments, varieties of mortgages, credit issues and other things<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

BY ANNA & MICHELLE We have all heard this expression that implies that had a person known earlier in life what they know now, they would have done things differently.\u00a0The subject possibilities are endless.\u00a0While no one has a crystal ball to see into the future, it may be possible to learn from people who have […]<\/p>\n","protected":false},"author":1,"featured_media":17302,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[64,38],"tags":[],"class_list":["post-17300","post","type-post","status-publish","format-standard","has-post-thumbnail","category-better-homeowners-news","category-sponsored"],"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/17300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=17300"}],"version-history":[{"count":1,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/17300\/revisions"}],"predecessor-version":[{"id":17303,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/17300\/revisions\/17303"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/17302"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=17300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=17300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=17300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}