Is it possible to make money on a home purchase?
I believe that you can still make a profit in this down real estate market in Denver Home Mortgage. You just need to do it right. Their are not very many people right now that are talking about making money. Especially in this real estate market that is down right now.
I am going to give an example of this. How much does it cost to buy a home? I mean out of pocket expense? I want to use 2009 as an example.
Since about 90% of all the loans right now are FHA loans. We will need to use FHA loans as the example because the will probably be the type of loan used.
In my example we will be purchasing a home for one hundred thousand dollars. we ill need a down payment of three thousand dollars because FHA requires a three present down payment.
You will probably need to bring some money for the closing cost. Lets say on average 2500 dollars to help with the closing cost on a $100,000 dollar house. So we have a total of about $5,500 dollars into the house.
We need to all so take in to account that the US government is giving a credit for eight thousand dollars. So it will not actually cost you five thousand five hundred dollars.
So now we are up $3000. We do have a mortgage payment to make. Lets say that its total is $850 as an example. Well no matter where we live we are going to have to pay that any ways are we not.
So we are now up $3000 so far in our investment. I do want to consider this a long term investment. So I want to see were we might be in 10 years.
So far we are only up three thousand dollars. But where are we going to be in ten years. because we all ways want to be thinking long term. We should over those ten years watch the property price double in that time.
Now we don’t know what the future will bring but we can use averages. So after the ten years we should be at about one hundred three thousand dollars in the ten years. That is a lot of money. How many investments can make a return like this? remember from day 1 we were up $3000.
Related posts:
