Interesting enough, I have been in and around the real estate business all of my life. From the time I was a kid, my Father sold real estate. In fact he worked in the same office as Tom Hopkins, the Real Estate Trainer who made his mark by selling in a band uniform.
Back in "The day", I remember my Father telling me about houses and that if you wanted to buy one, you needed 20% down. Putting money down was the norm. Part of the American Dream was saving the money for a down payment and the pride associated with that.
Contrast this to the last few decades where 100% financing is the trend. Easy credit was everywhere. No-doc loans, quite popular until a few years ago, enabled perspective home buyers to simply state the income they made with no supporting documentation. Another extinct loan package was the 80/20, yet one more way to buy a home with no money down. Is it any surprise that we see the many distressed sales on the market recently?
Certainly there are many examples of how easy credit has manifested itself upon our economy. Credit cards, car loans, home equity lines of credit and yes home mortgages have all been used excessively. Now the chickens have come home to roost. Our current economy is a result of debt accumulation and over-financing of years past.
Looking forward, I expect Colorado Springs real estate will improve....over time. Although we have seen some bright spots recently, there is also the potential for bumpy roads in the short term. Additionally my belief is that, once past these rough times, we will be better for them. Lessons will be learned about finances and use of credit and we will become more accountable to ourselves to live within our means. As a result, Colorado Springs real estate and national markets alike will be based upon solid, sustainable growth which will provide more reliability in the investment of real estate.
By no means would I ever discourage home ownership. In years past owning real estate was among the top vehicles for accumulating wealth. I see no reason for that trend not to continue in the long term. When purchasing a home now or in the future, my recommendation is to buy it the way they used to. Keeping a few "Old fashion" values in mind will dramaticly improve your position: 1) Put a large amount down. 10% or more. 2) Be debt free. Get rid of credit cards and car payments. 3) Go for shorter term mortgages. Look into the possibility of a 15 year vs a 30 year mortgage. 4) Maintain a lower debt to income ratio. Is would be wise to buy less home than you can afford. Save the stress on yourself and your wallet with a lower payment than which you qualify. You will be happier for it!
Opinion written by William Szilagyi, Williams Homesellers.www.ZColorado.com,www.WilliamsHomeSellers.com 719-646-2634,colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs,Monument Real Estate,Palmer Lake Real Estate,Briargate Real Estate,Stetson Hills Real Estate,Fountain Real Estate,Air Force Academy,Colorado Springs Horse Property,Manitou Springs Real Estate,Colorado D20 Schools,Woodmoor Real Estate,Jackson Creek Real Estate
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