Market is too hot.. should you wait to buy a house?

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2020 and 2021 — the real estate market has been very different, more than ever. March & April 2020, nobody went out to check out a house. March 2021, there are not enough houses to buy…

Why?
Covid 19 pandemic, lack of inventory, sellers not willing to list their homes for sale, finding a replacement property is tough and the lowest interest rates. Basically, demand is too high, way more than the supply stream. 

What to do when the market is very hot and highly competitive?

  1. keep saving down payment
  2. keep improving your credit score to get a better rate
  3. keep adjusting your home search parameters/wants/needs list
  4. stay in the market, keep looking, keep positive
  5. keep writing offers until you get one!

New Home Search in Oregon & Washington (Portland-Vancouver Area)

When there are limited numbers of homes for sale, newly built homes could be a great option. Here’s a video that covers some key points when considering a new home:

Here are brand new homes for sale by areas. You can use the widget on top as well.

New homes for sale in Portland Areas
New homes for sale in Beaverton, Oregon
New homes for sale in North Plains, Oregon
New homes for sale in Hillsboro, Oregon
New homes for sale in Cornelius, Oregon
New homes for sale in Tigard, Oregon
New homes for sale in Milwaukie, Oregon
New homes for sale in Wilsonville, Oregon
New homes for sale in Happy Valley, Oregon

New homes for sale in Vancouver, Washington
New homes for sale in Camas, Washington

Paying off mortgage fast!!??

In this video, I’m sharing 3 ways to pay off mortgage faster. Also, I talk about why you would want to pay off the mortgage fast and when you wouldn’t want to do that. It depends on your current “life stage” and your financial goals. The answer isn’t as black and white because every individual’s situation can be different (just like in every finance situation). But, I’ll try to make it easier to follow.

  1. Current monthly payment + Extra (example $200/month): 25.3 years to pay off and save $96,125.72 in total interest payment.
  2. Bi-weekly payment: 26.5 years to pay off and save $71,607.82 in total interest payment.
  3. Bi-weekly payment + Extra: 22.4 years to pay off and save $153,334.14 in total interest payment.

Based on loan amount $400,000, 3% interest rate, 30 year loan payment (principal and interest)

Financial calculator: https://bit.ly/2G6OIZz
Property evaluator: https://apple.co/36niVyP
Here’s my book recommendation on real estate investment. Hold by Gary Keller: https://amzn.to/3cCVH8W
Other Youtubers I learn from:
Graham Stephan: https://www.youtube.com/c/GrahamStephan/featured BiggerPockets: https://www.youtube.com/user/BiggerPockets

Active investor (should-be-active investor): I mean that if you are under 35 years old and making income and want to invest for the next 20+ years and take some risks because the longer time in the market can overcome shortcomings. There are better ways to use extra income toward other investments rather than paying toward your mortgage, such as stock or the real estate market. If you can make +7% in your other investments and pay 3% toward your mortgage, your net gain is 4% which is obviously better.

Passive investor (want-to-retire-soon investor): someone who has been investing for a while and additional investment is not necessary; you might want to pay down the mortgage faster, so you can reduce monthly living expenses. Or you just want peace of mind. If you lose sleep because you are worried about your investment losing value, no matter how great that portfolio might be, you wouldn’t want that. At least, paying off mortgage faster can work as paying 0% than -3% that you pay to the lender.

Opportunity cost: That extra $200/month can go toward paying down your mortgage faster or invested toward something else that can yield more return. The more time you have, the better it will work for you. Because of the compound effect that gets amplified by time in positive or negative directions.

  • Want to schedule a meeting to talk about your strategy?