Comments on: Why Now Is The Time To Buy Malibu Real Estate http://themaliburealestateblog.com/why-now-is-the-time-to-buy-malibu-real-estate/ A Malibu Real Estate Blog Giving You The Low Down On The High End 1 310 699 8428 Fri, 23 Jul 2010 20:37:51 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Malibu Real Estate http://themaliburealestateblog.com/why-now-is-the-time-to-buy-malibu-real-estate/comment-page-1/#comment-1573 Malibu Real Estate Tue, 05 May 2009 16:56:41 +0000 http://themaliburealestateblog.com/?p=651#comment-1573 You make an excellent point. I think your formula and plan might work best in a place like Las Vegas or Lancaster where there's an abundance of inventory and mass development. Malibu does have some unique qualities that prevents its prices from falling too low. Most of the good pieces of land have been built upon and there is probably less than a 20 new homes coming on the market each year. Beach properties will always be in demand and I believe now is a great time to make a deal on a beach house. I personally believe we are close to the bottom of the depreciation curve in Malibu. Yes there will still be price reductions but I can rest assured that Malibu will outperform most other cities around the US. You make an excellent point. I think your formula and plan might work best in a place like Las Vegas or Lancaster where there’s an abundance of inventory and mass development. Malibu does have some unique qualities that prevents its prices from falling too low. Most of the good pieces of land have been built upon and there is probably less than a 20 new homes coming on the market each year. Beach properties will always be in demand and I believe now is a great time to make a deal on a beach house. I personally believe we are close to the bottom of the depreciation curve in Malibu. Yes there will still be price reductions but I can rest assured that Malibu will outperform most other cities around the US.

]]> By: Economist E http://themaliburealestateblog.com/why-now-is-the-time-to-buy-malibu-real-estate/comment-page-1/#comment-1572 Economist E Tue, 05 May 2009 16:07:56 +0000 http://themaliburealestateblog.com/?p=651#comment-1572 Isn't it nicer to buy in a high interest rate environment where asset values are lower with the possibility of refinancing in a future low interest rate environment? It's a terrible time to buy when interest rates are low, like now. Prices fall as interest rates rise, because a given monthly payment covers a smaller mortgage at a higher interest rate. Since interest rates have nowhere to go but up, prices have nowhere to go but down. The way to win the game is to have cash on hand to buy outright at a low price when others cannot borrow very much because of high interest rates. To buy at a time of very low interest rates is a mistake. It is definitely far better to pay a low price with a high interest rate than a high price with a low interest rate, even if the mortgage payment is the same either way. Isn’t it nicer to buy in a high interest rate environment where asset values are lower with the possibility of refinancing in a future low interest rate environment?

It’s a terrible time to buy when interest rates are low, like now. Prices fall as interest rates rise, because a given monthly payment covers a smaller mortgage at a higher interest rate. Since interest rates have nowhere to go but up, prices have nowhere to go but down. The way to win the game is to have cash on hand to buy outright at a low price when others cannot borrow very much because of high interest rates. To buy at a time of very low interest rates is a mistake.

It is definitely far better to pay a low price with a high interest rate than a high price with a low interest rate, even if the mortgage payment is the same either way.

]]> By: Malibu Real Estate http://themaliburealestateblog.com/why-now-is-the-time-to-buy-malibu-real-estate/comment-page-1/#comment-1570 Malibu Real Estate Tue, 05 May 2009 04:38:43 +0000 http://themaliburealestateblog.com/?p=651#comment-1570 I don't know but if interest rates do rise wouldn't it be nice to borrow cheap money now and lock in a low rates? I don’t know but if interest rates do rise wouldn’t it be nice to borrow cheap money now and lock in a low rates?

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