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Cool Apartment Architecture, Coming Soon to Portland?
Right now there is obviously a TON of uncertainty in the marketplace regarding the economy. Inflation speculation is a common fear, and interest rates so far have held to historic lows. Currently, ten year rates are in the low to mid 5% range, which is historically incredible.
So, what does this mean for the buyers and seller of real estate? Basically, we are in a unique window to buy or sell, as the bank is taking less money. For example, on a $1,000,000 property with a 75% loan, a buyer will generate about $100,000 more wealth over ten years (including cash flow, tax benefits, and principal paydown on
the loan) than if interest rates were 1% higher at 6.5%!
A 10% increase in wealth compared to buying the same exact property, same rents, same expenses, etc. is a huge amount. So, if you are looking to buy or sell, now is a great time.
