Last month I chased around finding Leases. I know a lot of you are leasing rather than buying a new home in the hopes that home prices will drop. Be very careful about that decision - if the interest rate goes UP, this will affect your payment more than a drop in the price of the home would. Consider the big picture, if you are financing you home over a 30 year period. Here is an example:
Let's say today the home you want to buy is 200K and the current interest rate is 5.5% for a 30 year loan. You monthly payment (Principal & Interest) would be $1,135.58. Now, suppose you wait until next year, you are sure prices are going to drop because you read all the bad news about the housing market in areas like Michigan and Florida. Suppose the price of the house has indeed dropped by $20K down to $180,000. That sounds like a nice chunk of money you saved by waiting a year, your dream home has dropped $20,000.00 in price. BUT, what if the interest rate for 30 year loan has gone up "just a bit" to 6.5%. NOW, your monthly house payment is $1,137.72 - you are actually going to pay more per month for 30 years!
200K financed for 30 years at 5.5% = $1,135.58 per month
180K financed for 30 years at 6.5% = $1,137.72 per month
Now is still a GREAT time to buy a home. There are some wonderful homes on the market in the Austin area and interest rates are still good.
OK - back to my leasing for those of you needing to lease in the near future.
Northwest Austin is a wonderful place to live, I know first hand, I've lived it for 15 years. We have great schools (my kids have gone all the way through, Spicewood Elementary, Canyon Vista Middle, Westwood High School), easy access to major roads, shopping, dining, parks, etc.
Last month I found a great home for some clients. The good leases on the market in area NW go really QUICK! Some of the homes had multiple applications being run on them so it is best to have all the paper-work and applications ready to go BEFORE you start looking. Not everyone looking to lease has a perfect credit score, it helps if you detail any problems that are going to turn up on your credit check. Attach a letter to your application explaining past history that was a problem. Credit application fees are NOT refundable and they will cost you average 30-50 dollars per applicant. Each person on the lease will be required to pay this fee and have a credit check run against them. Property management companies all operate differently. It is in your best interest to have a Realtor help you with the lease process. You do not pay for this service, the Realtor gets paid through the landlord when you lease the property.
Here is a current snapshot of the available leases for HOUSES in Northwest Austin.
20 Homes For Lease
Prices range from $1095 to $2,600 per month
Some of the neighborhoods available are Canyon Creek, Hunters Chase, Spicewood At Bullcreek, Milwood, and Village At Anderson Mill. These are all great neighborhoods to live in.
If you need help finding just the right neighboorhood and home give me a call: 512 422 8545 or toll free 800 591 1165.
NOTE: Austin American-Statesman article today says Interest rates may be cut this week to 5%. This would be the lowest since 2004.
