No interest? On the contrary...
There have been a lot of articles recently about the popularity of no-interest loans (
this one has some of the pros and cons, registration at the Washington Post required); most of them seem to be a bit alarmist, and talk about how people are going to find themselves in trouble if the housing bubble bursts. Taking a no-interest loan is, more or less, betting your house will go up in value. Though there are no guarantees, of course, in the Charlottesville area in the next few years, that would be a pretty good bet.
However, I am a bit conservative, and the one thing I always caution my clients against is maxing out on debt. I don't think a no-interest loan in order to buy a home one couldn't afford any other way is a very good idea, but there are certain conditions under which such a loan is a sensible choice. A reputable lender will give you a variety of options and help you select the best one when financing your new home.
Take a look to the right!
I've added links to some of the best attractions in the city! Bookmark this page if you want a quick check of what's happening in Charlottesville!
A piece of history in Charlottesville...
After twelve years of inactivity,
The Paramount Theater finally opened on the Downtown Mall. Honestly, I never thought they would finish, but after years of walking past the construction on the Mall, it's really nice to see the theater finished. It really adds to the atmosphere of the Mall, and it's a beautiful place to go for a night on the town. We've already caught
the Garth Fagan Dancers there, and we're going to see
Aimee Mann in June. If you're visiting the city from DC or out of town, check their website to see if something is playing that evening; seeing the inside of the theater is almost worth the price of the ticket.
Gone!
To all of those who have asked about this house...
...yes, it's a wonderful-looking house, but it is now currently under contract. Still, your dream house could be out there!
I'm always just an e-mail away!
"It's On The House!"
It's a really fascinating time not only for real estate agents, but also real estate owners. Owners in their twenties and thirties have seen 100% appreciation in their homes in less than a couple of years while their parents saw a 1%/year increase for decades. Home equity loans are very popular these days, but is it so wise to spend this money on new cars, new houses, improvements, or travelling?
I think borrowing against your house is the last thing you should do in order to finance luxuries, like new cars or travelling. If your financial situation changes and you cannot make your new payments, you've placed your house in jeopardy. Using home equity for improvements or a second home is still a risk, but it's a calculated risk that can pay off. In my opinion, your improvements should increase the value of your home but still keep your home within the price range of your neighborhood (don't put a $50K kitchen in a $200K townhouse). Buying a second home creates another opportunity for income, but you have to know whether you wish to rent or turn over the home, and the risks of each course of action. Feel free to contact me with any questions about these issues at
inessa21@juno.com, and here's an
article you may find interesting. (You need to register w/the Washington Post in order to view the article.)
