Can Terms Be More Important Than Price?

Salt Lake City Real Estate Podcast with Justin Udy

Why should you be paying attention to the terms of the market? Actually, there are a couple of reasons.

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Why should you be paying attention to the terms of the market? Actually, there are a couple of reasons. Whether you’re buying an investment property, you’re buying a second property, or are moving into a single-family home, the terms of the market are just as valuable as the price. Let’s take the example of comparing a $1 million home at a 1% interest rate to a $100,000 home with a 10% interest rate. These payments would end up being very similar, but the real issue is the terms of the interest rate.

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The terms of the market are just as valuable as the price.

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There are a few quick statistics I’d like you to think about. The average rental rate in the market is constantly rising. And with all of the people currently moving into our area, this is expected to continue. My point is that: interest rates in the market allow us to purchase and own at a better price. This means you can typically own a home for less money than it would take to rent one. These interest rates will not last. And when they do rise, you won’t be able to match the kind of terms we’re seeing today. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.