If you’re considering the purchase of a new car and are also considering purchasing a Salt Lake City home or condo within the next couple years, here’s more to think about.
As soon as you drive a new car off the lot, it starts to depreciate. If you didn’t put any money down on the vehicle and financed it for four or five years, it’s quite possible that you’ll owe more than it’s worth for at least a couple years, maybe longer.
Also, that car payment will affect how much Salt Lake City home you can buy. So if you owe more than it’s worth, you might get stuck with the car, and that could hamper your ability to buy a home or at least reduce the amount of home you can afford. See my last blog post dated 5/11/09 for more on that.
The Salt Lake City real estate market cycles up and down. And right now, Salt Lake home values have been decreasing for about two years. Over the years the value of Salt Lake City real estate goes up.
Are we at the bottom? I don’t know and we won’t know until after it happens, but both interest rates and home prices are very low which makes it a buyer’s market.
If you want to buy a home or condo in Salt Lake in the next two years, think ahead about the financial decisions you make today.
If you need help with the purchase of a Salt Lake City home, condo or duplex, please contact me. I’m an experienced Salt Lake City realtor and the majority of my clients are buyers of Salt Lake City homes and condos.
Kevin Coyle
Associate Broker, MBA
SLCHomes Real Estate
Cel: 801-243-0699
Office: 801-466-8977
Kevin@SLCHomeBuyer.com