Given the rapid pace of things in the world today it seems like it’s now necessary to plan ahead just to keep up. The Santa Barbara real estate market is starting to experience more buyers who are planning to purchase their next primary residences well ahead of time. With rents at all-time highs, interest rates at near all-time lows, and prices still off of near future projected peaks, the idea of purchasing now rather than later makes sense, especially for buyers in the downsizing category.
Take for example the new Santa Barbara condo listing at 2727 Miradero Drive #213. A four percent 30-year fixed rate loan with 30 percent down payment yields monthly payments of approximately $1.600 (principle and interest) plus $440 (property tax) plus $460 (HOA dues) for a total of $2,500 per month. The market rent for a property like this in Santa Barbara right now is also around $2,500 per month. Then if rented after purchase, whatever appreciation the property accumulates before it’s vacated and moved into by its owner is profit.
If interest rates and prices remain fairly steady we may see this trend for a while, although any change in factors could close the current window of opportunity. If you plan to be in the market for a home in the near future it’s not a bad idea to consider your options now. I appreciate the opportunity to provide you with any specific information you need to help with your most important real estate decisions. Thanks for your inquiries.