Categories: Home How To's, In the News | Posted: March 16, 2017
If you have never heard of The Skimm, let me enlighten you. It’s a daily email sent to your inbox that compiles important world news stories and parses them down into bite sized chunks. I love The Skimm, and was happy to see a snippet today about something that is relevant to the Real Estate industry.
Yesterday, The Fed increased interest rates again. Since the financial crisis in 2008, the economy has been slowly but surely rebuilding itself, and the announcement yesterday shows that our economy is continuing along a predictable path. Though some may see rising interest rates as a sign that it will become more difficult to make big investments, what it really means is our economy is thriving and the market is responding positively to those changes.
Now, don’t panic. Even with the recent quarter-point increase, interest rates are still historically very low. This means it’s still a great time to borrow money from the government for smart purchases, (like a JayMarc Home!)
Investing in real estate and home ownership is a wise decision because it’s what is called an appreciating asset. Over time, your home and the land it is built on will increase in value, meaning when you are ready to sell, you will get more money for it than you originally paid. Cars, for example are depreciating assets, because as you drive them and put miles on them, they lose a lot of their value.
Some expected The Fed to respond to market changes with a more aggressive rate increase, so the fact that they are increasing rates slowly and steadily shows that market economics are reacting in a predictable manner, which is good for everyone.
JayMarc opts to build homes in neighborhoods that we know will appreciate over the years. We build in districts with the best schools, great walkability, and lowest crime rates so we know our homeowners will want to live there for years. Now is a great time to buy because The Fed is planning on raising interest rates two more times in 2017.
If you are interested in learning about how you can take advantage of this great time to invest in real estate, JayMarc is hosting a Custom Home Seminar on Saturday March 25th where we will talk about finding land, the process of building a home, and custom construction loans. Please RSVP to Adrienne@jaymarchomes.com. We hope to see you there!