By Nancy Hankin
There have been some interesting results from recent surveys of the affluent. It seems the wealthy owe money just like you and me. But it is how they borrow that is different. They have fewer installment payments and those at the top of the heap have no credit card debt.
However, what they do have is a mortgage. Yes, those considered wealthy are homeowners, a hefty 95.8 percent compared with an overall average of 67.7 percent. And approximately 40 percent have additional investments in real estate. It seems the wealthy are well aware that the current low rates make mortgage money an especially good deal.
The other day I talked myself right out of a potential sale! I spoke with a friend who was thinking of selling her home and moving into an apartment. When I asked her what her monthly expenses for her home were, they were approximately the same amount as renting an apartment would be. Keeping in mind that she has some great tax deductions from her interest payments and taxes, I advised her NOT to sell. I explained it would actually cost her MORE if she were to sell and rent an apartment.
Over the years, many of my clients have purchased good, sound Investment Property and they have bought 1-3 additional homes or condos and used these to obtain good rental income. A wise investor knows the best time to buy is when prices and interest rates are down…..which happens to be NOW!
So the next time you know someone who wants to buy or sell, I sincerely hope you will refer them to me. I promise to take very good care of them, and make sure their investment is a wise one!
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IMPORTANT: If you or someone you know is interested in buying or selling a home in the Palm Desert Area, try searching properties on the same Desert Area MLS Realtor’s use, or give me a call….or visit my website at Palm Springs Homes and Estates. I will be happy to give you or your referral my “red carpet service.” After the sale, I will send you a $50 Gift Certificate towards dinner in a fabulous Palm Springs Area Restaurant so you can celebrate!