Housing expert advice - buy a property in bay area or Seattle before March next year before interest rates go up
(note : got lots of DMs for helping with property evaluation. I am not a realtor. Please work with your realtor for bidding on a property. I am only sharing knowledge I gained through property management experience)
I am a housing expert managing several investment properties for the last decade+.
This is an advice for those looking to buy a house especially in the bay or Seattle.
If your down payment is ready to go, you need to go very aggressive till March.
Fed will increase interest rates by March 2022. If that happens you are looking at significant rise in mortgage payments.
For e.g. For $2M loan, monthly mortgage will increase by $1700/month if interest rate goes up by 1%. That's $20.5k increase per year.
First interest rate hike will be significantly high followed easy ones in 2nd half of 2022.
And there is absolutely no way fed is going to decrease interest rate for a significant period.
Inventory crunch is not going away.
My TC :$500k+
Total properties in the US : 11
In bay area : 3 (including my primary house)
#mortgage #housing
comments
Seattle has already seen condos in the city go in the opposite direction from houses, probably because everyone moved out of them into houses in the suburbs during the pandemic.
I can easily see that go to the next step, with people moving even further afield, and the condos in the city soaking up demand from suburb housing as some do return to work.
I expect housing that is 3-6hr drive from the city to be see the most growth as people orient around coming to the office a couple times a month or only for events.
wait and watch, my dear!
Imo, people are in euphoria and fomo. As mentioned lots of things are driving costs up. Let it dry out..
In 5-6 years, i have bought 2 houses and every year i bid trying to always find better deal. I was successful once and i will be successful next time too. I am confident about my strategy.
Yes, challenge is still there. 2 years talk to me again. Let's see who's winner. There are 100 will bet against me and few are with me. I never follow trend.