In today’s podcast, let’s review the last seven days of tweet posts I made. They cover a wide range of real estate-related information—money-saving tips, mortgage rates, and a brief touch on the economy and my predictions.
We’ll delve into 30-year mortgage rates and touch briefly on the economy and my predictions, as you know, I love making predictions and have been right most of the time, so you may find some value in that. We’ll also look at lockbox access activity, median sale prices nationally and in the Portland metro area, and go over some blogs I’ve written that can be helpful to homeowners and homebuyers.
Welcome back to the Shawn Realty Podcast. I’m Shawn Yu, serving Oregon since 2008. One post I shared about eight days ago discussed the trees that fell near my house during the winter storm. Trees can be hazardous to houses in Oregon, especially after last winter’s storm about four months ago. I’ll be informing my buyers more about the dangers of trees near houses when they’re looking to buy.
Something interesting to consider is tax-adjusted payment.
This means that because the interest rate is high, you can deduct more of the interest payment from your annual tax report. For example, on a $500,000 home at a 7% interest rate, the monthly payment is about $4,150, and the tax savings you’ll get could be around $575 monthly. So after adjusting for this tax benefit, the monthly payment would be down to $3,576. This shows that the effective monthly payment is much lower than it appears initially due to tax savings you get on the interest payments.
Summarizing, even though the monthly payment may seem high at $4,150 for a $500,000 home loan, after applying the tax savings, it’s more like paying $3,576 a month, which is about $1,000 more than renting an equivalent home about $2,500 a month. If you rented for five years, you could spend about $150,000 in rent, whereas owning a home allows you to potentially recoup that some of the money when you sell, cash-out refinance or home line of equity loans.
Another point to consider is co-ownership with a friend or roommate.
Which I believe is better than continuously renting until you can afford to buy by yourself. This allows you to get into homeownership faster and share equity gains and mortgage payments. Of course, clear agreements and goals are necessary in such arrangements.
Regarding mold
It’s important to be aware of its presence, how to identify and address it, and the health risks associated with it. Mold can cause chronic illnesses and significantly affect home values.
Deepfake technology
is becoming increasingly concerning, with scammers using it to deceive people into sending large sums of money. It’s essential to stay vigilant and verify the authenticity of any requests, especially involving money transfers.
Investment companies buying up large numbers of homes
for rental purposes can hinder the American dream of homeownership for many families. This trend may lead to a nation of renters rather than homeowners, particularly for those with lower incomes.
Bi-weekly mortgage payments
can save significant amounts of money on interest and reduce the loan term. Some lenders offer this option, which can shave years off your mortgage and save you thousands of dollars in interest payments.
Interest rates are on the rise, which could further impact the housing market. It’s crucial to be prepared for potential increases in interest rates and their effects on mortgage payments and affordability.
Lockbox access activity remains stable in the Portland metro area, which is a positive indicator for the real estate market. Nationwide, the median sale price has increased by about 5% since last year.
Overall, it’s important to stay informed about various aspects of real estate and financial matters to make sound decisions for your portfolio. If you’re interested in any of these topics, feel free to explore more on my blog, where you’ll find detailed articles and videos covering these subjects. And remember, owning a home can be a valuable investment in your future financial security.
Shawn Realty 