Historical LOW interest rates!
Redwood City, CA, So what! What does that mean to me? What the hay how can these interest rates benefit me?
Well let’s take a lovely townhouse in Burlingame just 1.5 from Burlingame Avenueat 119 Primrose Road unit #6. Without going into all the great things about this home what is the money figures on this home, if I invest in it?
119 Primrose Road in Burlingame is currently listed for sale for $619,950. Average rents in Burlingame for 2 bedrooms, 2.5 bathrooms is currently at $2600/month
As a non-owner occupied property the bank will require you to put a down
payment of 30% or $185,985. With current 30 year, fixed rate interest rates being at a historical low 4.375% your monthly principal and interest amount will be $2,166.72! If you add
Property Taxes, HOA dues, and Inside insurance it brings your monthly payment up to $3136. This give a differential of <$536.00>.
However, your depreciation would be approximately $1,315/month plus you get to write off the property taxes just like you do on your own personal resident. So at years end you may be in the positive.
Additional positive aspects would be appreciation and increase in rents over the long haul.
This might just be a good investment you might want to give serious consideration. It could be the
way to pay for your children/grandchildren’s college education in future years.
Obviously, interest rates are not going to stay at these low levels for a long length of time. Act today before this opportunity get away from you. Do it now.