I hear this question all the time. And the reality of the situation is that if you can afford to buy, then buy. Unfortunately, the cost of real estate in the Monterey Peninsula has become out of reach for the masses. We are a global destination and the proof is in the numbers. Roughly 40% of all home purchases on the Monterey Peninsula the last few years have been by absentee homeowners which means these purchases are 2nd or 3rd homes for people that can afford this type of lifestyle.
For those of you that can afford to buy but may be on the fence, considers this:
1. Homeownership is (financial security). You may not think so now but imagine what rents will look
like 10 of 15 years from now. If you bought your home just 5 years ago chances are your mortgage
mortgage payments are very close to rents in your area. This would also mean you could rent your
home and buy a new home.
2. Mortgage Interest Deductions. This is huge! Mortgage interest on loans up to $750,000 are
deductible. Interest on a 15 or 30 year loan is amortized over the life of the loan. In the early years
of the loan mortgage payments payoff the interest first then the principle in the later years. If your
mortgage is $3,000 for example, approximately $2600 is applied to interest and only $400 applied
to the principle. Towards the end of the loan these numbers are reversed.
Bottom line is if you can afford to buy, and you plan on living in the area for at least two years, call me and let's talk about how we can make your dream a reality.