What will it Cost You to Wait?

Everyone in Hawaii realizes we have some of the most expensive real estate in the country. I got into the mortgage industry 22 years ago with the hope of helping people obtain financing to obtain the home of their dreams. That is why it saddens me so often these days that many of our friends and family today feel they will never be able to own a home in Hawaii.

I have written over the past several months articles that dispel many of the myths Hawaii residents have as to why they can never afford a home here. The articles have highlighted topics such as low and zero down payment programs, shown how much you can qualify for with the income you have, and last week, comparing the huge benefits of buying versus continuing to rent. In last week’s article, we compared renting for the next 10 years versus buying. Even though the monthly payment was a couple hundred dollars higher to buy versus rent, when you take into account the appreciation, and that a portion of your mortgage payment goes towards paying your loan balance down, in the 10-year analysis, the buyer was ahead of the renter by almost $200,000!

This week I want to focus on those that do want to buy a home, but feel the timing just isn’t right. Some think interest rates will come down, some think home prices here are due for a correction. None of the experts think either of those scenarios will come true. In any case, if you are wanting to buy a home, but for whatever reason you feel it would be better wait, the following detailed report will show you why you should reconsider.

Our detailed analysis is based on a current MLS listing (#201905028) at Ocean Pointe in Ewa Beach on Oahu. The property is listed for $700,000. The report is based on buying the home with just 5% down. With good credit you could get a 30-Year Fixed rate mortgage today at 4.500% with no mortgage insurance! The loan has zero points, so your closing costs will run about $4,000 in total.

Read the report in detail of just how much it will cost you to wait just 1, 2 or 3 years.

Also, if you are a real estate agent, and would like a custom report of your property for your clients, please let me know.