Kathy Henne: Your home is your biggest investment


By Kathy Henne



Real estate agents are fielding lots of questions about the current housing market and with good reason. The local market is at an all-time high. Sellers are enjoying bigger checks at closing than they ever dreamed of. Our homes are the biggest investment for most of us.

The indicators still look promising: jobs are plentiful, income for most is rising, and the Baby Boomers are looking for second homes. Many of these homes are condos with little upkeep, no grass to mow, and close to the golf course. Usually these homes are in great vacation spots. Many of these Baby Boomers are buying the second homes now with an eye to retiring to these second homes in the future. They will use them as investment properties and have their renters pay the mortgage and usually provide the owners with a bit of profit besides.

What could go wrong? A large drop in the job market combined with a large jump in mortgage rates. However, job growth was good last year and rates remain at a low.

The hot market conditions won’t last forever. Prices will decline in overheated markets, but our market will probably see the kind of growth that should be expected.

Interest rates are still at historic low, but you can bet that rates will gradually rise and lenders may tighten their requirements. This makes properties less affordable, inhibits demand, increases inventories (the number of homes listed for sale in the real estate market), and slows appreciation.

Just remember that your home is also an investment. You can continue building equity in your home by making your mortgage payments and paying a bit extra whenever you can. Many homeowners try to include an extra 1/12 of their payment each month, which adds up to a full extra payment each year. Whenever you pay that bit extra, it goes directly to your principal which can knock years off the life of your loan. So, relax and don’t worry about the real estate market. Our local market is doing just great.

If you’d like a referral to a real estate agent in a sunny vacation spot for a second home or condo, just ask your local agent. They can find you a great agent in that area to help you buy your second home.

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By Kathy Henne

Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.

Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.