Answer: Besides the obvious, the timing couldn’t be better to buy either one of them.
It’s kind of funny… a friend of mine just bought a boat and was commenting on how he was thinking about buying an RV to tow it. I thought to myself, “Why would you ever want to buy an RV right now with gas prices being what they are?” He went on to say that due to the high cost of fuel, the prices on RV’s have come down over 40% and you can get these amazing RV’s for little money. If you think about it, an RV that costs $60,000 to buy “normally” would be around $36,000 at 40% off… and even with the current hike in gas prices, it would take years to spend the $24,000 savings! Eventually, gas prices will come back down or our dollar will be worth more, so in the long run you win.
This same theory can be applied to real estate. People keep waiting to buy because they think the market will keep dropping. That may be true, but history proves that real estate always recovers from downturns. In addition, if you tell the customer to look at how much money they are wasting each month by paying rent and not taking the tax write-off from the mortgage, it might help move them closer to buying. Have them look at it this way: if the average monthly rent is $1,500.00, that means they are just throwing away $18,000 a year!!!
