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Record Mortgage Rates: Is It Time to Invest in Real Estate?

Most people are aware of the record-setting lows Costa Mesa mortgage rates are chalking up right now—the kind of rates that create tempting cashflow projections for even the most conservative would-be investors. But, of course, other factors enter the decision, whether they are planning their real estate investment for their own residence or as a rental. Given the uncertainty in the economy, prospective buyers are asking themselves if now is the right time to be investing in Costa Mesa.

Bankrate.com, the popular investment site, just tackled that question. Its reasoned response: the answer is yes and no (but mostly, yes). “It’s hard to see such low rates and not reach for your checkbook,” was its understandable response. But even so, some time-honored qualifications remain.

The first proviso has to do with how long the investor plans to hold the property. If the answer is anything short of 5 years, transaction costs take a considerable bite out of the financial benefit—even considering the unusually attractive interest rates. For that reason, younger prospective homeowners in particular should consider if the property will accommodate a growing family. It may make sense to consider a larger property than is currently needed—particularly if these rarely-seen mortgage rates make it budgetarily sensible.

For others who are considering an investment in Costa Mesa as a landlord, the same considerations apply. On the other hand, for others who may be planning a “quick flip,” the unknowns in the economy could make that investment one that requires a heightened degree of caution. In most instances, though, if you are planning on holding the asset, if the cash flow projections make sense, the ‘yesses’ outweigh the ‘nos.’

With mortgage rates as attractive as those seen now, investing in Costa Mesa is an undeniably tempting proposition. Of course, the first step is the one that underlies all: identifying the right property. Call us today to discuss what is out there right now!

We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976.  It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa  If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com

 

 

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