Higher down payments could be on horizon

Banks are tightening access to money because they can’t touch rates significantly just yet. It will get harder to borrow but this will not make it easier to buy.. If your standing on the sidelines with the belief that you’ll jump in and grab properties at a steal if prices drop then you don’t know your history. In the event that prices drop due to rates or prohibitive lending criteria you likely won’t be able to come up with enough money down or the bank will find a way to decline you as was common in the early 90’s. If you need a house to live in then buy one you can afford to and make sure you’ll be able to make payments at higher rates with lower income. If you’re an investor put large money down and focus on strong rent rolls and cap rates. If you’re a speculator… better start doing a lot of reading and forecasting.

Click link to read article.

You may also like

Comments are closed here.

About me

Jimmy Vlachos

Jimmy Vlachos

I am not driven by selling or buying. It’s not what gets me up in the morning nor what keeps me working late into the night. I am driven by a desire to be free, to do what I please with my time, to travel and experience all that life has to offer. My desire to be free is what lead me to Income Producing Property Investing. More...

Connect with Me