Occasionally, buyers who can qualify to purchase a home decide to “take a break” and wait to purchase a home. When the focus of buying a home is relaxed, other uses for the money that was going to be used for the home are considered.
Maybe they think how much fun it would be to have a Sea Doo or a motorcycle or a new car. It is amazing how many people would like to buy a home but either don’t have the down payment, the income or the good credit to make it possible.
Instead of spending the money, consider investing the money for two years until the time is right to buy a home. Let’s look at putting the money in a certificate of deposit that earns 2% or in the stock market that could average a 5% return.
Assume you were purchasing a $295,000 home on a FHA loan with 3.5% down payment. The $10,325 would grow to $10,742 in the CD which isn’t a big increase but at least it is safe and secure, and it will be available when you’re ready.
If the same amount were invested in a safe stock or mutual fund that earned 5%, it would grow to $11,383 in the same two-year period. It earns more but there is more risk involved.
Your Best Investment | |||
CD | Stock Market | Home | |
Cash to Invest | $10,325 | $10,325 | $10,325 |
Wealth Position | $10,742 | $11,383 | $38,871 |
Profit Taxed as | Ordinary Income | Long-term capital gains | §121 exclusion applies |
Alternatively, if you invest the same amount in purchasing a home that appreciates at 3% a year, the equity would be $38,871 two years from now. The dramatic increase is due to leverage, being able to control a large asset with a small amount of cash. The appreciation is based on the purchase price not the down payment.
Another factor is that there is principal reduction with each payment that is made.
Make your own projections with Your Best Investment.
We experienced top class service
Me and my wife were first time buyers and didn’t have much insight in to home buying. We selected Fred and Linda as our agents and we are very happy for that decisionWe experienced top class service from them. They were nice and really helpful through every stage of the process. Explained every single step of the process and helped us to close the escrow in less than 30 days. I never faced any pressure during the entire process and the whole process went fairly smooth with all their expertise and help. I would highly recommend Fred and Linda any time.
– Danny B.Danny B.
A very smooth process
Fred and Linda were so knowledgeable in the field and we trusted them every step of the way! It was a great experience working with both of them. They got us the asking price we wanted and made it a very smooth process!!– Stephanie W.Stephanie W.
Guide us through the home selling process
Fred and Linda are not only superb agents, but wonderful people as well. Extremely knowledgeable and market savvy while being down to earth and personable. It was an absolute pleasure having them guide us through the home selling process.– Ron D.Ron D.
Very first experience with selling a home
Linda and Fred are very knowledgeable about the real estate process. They held my hand throughout my very first experience with selling a home. They make great seller’s agents and helped me every step of the way.– Mark & Tiffany H.Mark & Tiffany H.
Took care of all details in a timely and knowledgeable manner
Very professional. Took care of all details in a timely and knowledgeable manner. A pleasure to work with.– Thomas G.Thomas G.
Expertise and advice helped us to land the very first house
Fred and Linda were so great to work with. In this stressful, very competitive market, their expertise and advice helped us to land the very first house we put an offer in on. They are kind, professional, honest, and great people to work with. We will highly recommend them to any of our friends and family.– Adam T.Adam T.
Knowledgeable in every aspect of real estate
Linda and Fred‘s experience was immediately evident when we began working with them. They are extremely knowledgeable in every aspect of real estate and were supportive throughout the entire process. When we had questions or concerns, they were always available to answer them. We appreciated their patience, positive attitude and willingness to go above and beyond what was required. We would absolutely recommend them to friends and family who are looking to buy or sell their home!– Sam K.Sam K.
Very informative and always available
Being that this was our first home buying experience we had loads of questions. Fred was very informative and always available when we needed him. The house we bidded on was listed over market value and he helped us negotiate down to a fairer price. It was good to have someone with his experience and assertiveness on our side.– Marty P.Marty P.
Our house sold in less than 6 weeks
Fred and Linda kept in constant contact with us throughout the entire process to let us know what offers were coming in and they gave excellent advice to help us get the best price for selling our home. They were always there to answer the phone when we had questions. We couldn’t be happier with the professional service they provided. Our house sold in less than 6 weeks at a price that thrilled us.– Randy W.Randy W.
A wonderful buyer’s agent
Linda worked with me for about 6 months to help me find the perfect home. In this market, it was quite a challenge and Linda was patient and encouraging throughout the entire process. She understood what I wanted in a neighborhood and a home, and I could not have asked for a better experience with a Realtor. She is a wonderful buyer’s agent.– Amber W.Amber W.
Very professional, sold my house FAST
This team is unstoppable. We had to do nothing! They are very professional, sold my house FAST, they took care of all the business. I would highly recommend them to all my friends and family. They also sold me 2 homes in the past and I always felt like I got a great deal.– John C.John C.
Helped streamline the selling process
Fred and Linda brings with them a wealth of information about the area where our home was located and I would recommend them to anyone selling their property in the San Diego area. They were also very accommodating of our needs and helped streamline the selling process.– Roland R.Roland R.
Our home sold at a fair price and escrow went about as smoothly
We moved out of state for a family emergency. Fred and Linda handled everything for us and it was not easy, nor were all of the tasks real estate related. Our home sold at a fair price and escrow went about as smoothly as possible. They are an amazing Realtor team!– Mary B.Mary B.
Service, knowledge and resources are outstanding
Fred and Linda Gregory were a pleasure to work with. I would highly recommend them to anyone in the market to buy or sell a home – their service, knowledge and resources are outstanding!– Mr. & Mrs. KMr. & Mrs. K
Price offer the day after it was listed
Linda & Fred were a pleasure to work with. Fred was totally honest about the condition of my father’s house therefore pricing it correctly. I had a full price offer the day after it was listed and it closed within days. They are personable and lovely people. Thanks again Linda & Fred!– Sue F.Sue F.
First time home buyer with absolutely no knowledge of the process
Linda and Fred were incredibly patient in working with me as a first time home buyer with absolutely no knowledge of the process. And I got serious about the process just as the market for houses in my price range got very competitive. Fred and Linda worked seven days a week during this time to get offers and other paperwork quickly prepared for me to sign if I spotted a house I was interested in bidding on.– Paul W.Paul W.
Lead us through every step of the buying process
Fred & Linda were great. They were very knowledgeable & helpful since we are new Californian’s. They quickly learned what type of home we wanted & strived to help us find it. Once we did, they lead us through every step of the buying process here. They are a great team & very nice people.
– James and Lora B.
James and Lora B. San Diego, CA
Great for us as first time buyers
Fred and Linda have a wealth of experience. This was great for us as first time buyers as we had a lot of questions, and their presence and help along the way was comforting and helpful.– Terrence C.Terrence C.
Prompt and professional
They were prompt and professional. They responded quickly to any inquiry or issue in a friendly and professional way.
– Casandra M.
Casandra M.
Explained the process at every turn
Fred and Linda were wonderful, certainly capable and very nice to deal with. Fred found the perfect condo for me and he found it fast. I didn’t even look at another property. Throughout the whole process he was there. Very experienced. He explained every paper that I had to sign. He was there every time I called him or he e-mailed and phoned me on every transaction. He explained the process at every turn and I highly recommend Fred and Linda to any one buying or selling real estate! I plan to have him list my home within the next 2 weeks. He used no pressure at any time.– Roberta P.Roberta P.
Kept us informed during the entire process
Fred and Linda were absolutely amazing to work with. From the very first meeting, Fred and Linda made us feel comfortable. They listened to our story and were very attentive to our needs. They kept us informed during the entire process. I couldn’t have asked for a better team to assist us with buying our first home.– Corinna K.Corinna K.
As a first-time homebuyer…
“Linda & Fred Gregory are a dynamic duo. My statement may sound cliche; however it was something I witnessed first hand. They definitely looked out for my best interest while living up to their brand.
As a first-time homebuyer I needed someone in my corner. Especially during an experience that can be a whirlwind of info & emotion. As my realtor Linda Gregory disfused my worries and kept me current on home buying policies. *Staying knowledgeable when purchasing a home is a must.
If your going to enter into a buyer/seller to agent/realtor relationship; you need people who know the real estate market and who is open to educating you.
I have and will continue to refer Linda Gregory. With her help and hard work… I can now call myself a homeowner. Thank you again, just thank you!”
Sincerely, J. Morgan
J. Morgan San Diego, CA
Web Support by ThatsGravy Designs
Web Support by ThatsGravy Designs