If you've spotted an expensive home for sale in that high-end neighborhood where you've always wanted to live, but still can't afford it without taking an interest-only loan, BEWARE! As I’ve blogged before, “interest-only” loans are a bad idea. When these loans come due with balloon payments, it could have a significant adverse affect on the real estate market as a whole, not to mention those who can’t pay their mortgages. It's time to change your focus from today's location to tomorrow's location!
Odds are there are more affordable houses a little farther out – in the next neighborhood or next town. Picture the value of that home in five to ten years – not it's value today -- when you are likely to sell it. If you don’t have time to spend your weekends driving around to search these soon-to-be hot locations, contact me for help. I’m up to date on the areas undergoing economic development and growth and can help with your location decision. Contact me at dgreco@kw.com to get you on the road to your new future!!
