Before we get into the meat of this weeks Buyer's Market topic, let's backtrack a bit and add one more bit of food-for-thought to last weeks topic. Earlier this year, Warren Buffett appeared live on CNBC's Squawk Box with Beck Quick. He started off my saying that along with equities, single-family homes are a very attractive investment right now. In fact he said he would buy "a couple hundred thousand" single family homes if it were practical to do so. Why would he? He went on to explain that if held on for a long period of time and purchased at low rates (now), houses are even better than stocks. Not bad at all.
Now for this weeks topic. Your Mortgage payment that you are forced to pay each month is a savings account for you. Each month less of that payment is interest that goes to the bank and more is cash that is going into the savings account that we call equity in your home. Over time the savings portion begins to increase dramatically each month. As we discussed above this equity savings account is financially beneficial at every stage of your life including: paying off high interest debt, home improvement, college expenses, medical expenses, starting a new business, and this goes all the way to a source of retirement income.
Join us again next week when we take a look at the tax benefits of the actual purchase of your Las Cruces home.
In the meantime, check out our website dedicated to giving first time home buyers like you all the information you need to make buying your first home a smart, well-informed, and pleasant experience.