Job Hunting Today?
A guest blog by Rachael Bohac
It’s been reported the first Wednesday in January is the biggest job hunting day of the year. We can all understand why: We just had several great days or weeks off for the holidays and now it’s back to the grind. The terrible boss, the long days, the thankless projects, the menial raise. The glimmer of hope that somewhere out there on the world-wide-web is a new position that will be the glass slipper your LinkedIn profile has been crafted for, is all the motivation you need to hit up Indeed and Monster. Heck, maybe even the local newspaper.
So, once you’ve properly caffeinated and answered the critical emails, you sneak a peek to see if the grass might be greener. The day-dreaming about that big raise is brimming with enough optimism to get you through the dark, dreary January hangover of Christmas.
After the requisite resume submissions to the corporate black hole, a couple of phone screens and finally a face to face interview, you land that gig. Sweet. Now what to do with that the bursting bank account? If you’re fortunate enough to have your credit in order, investing in a home is historically a move that leads to long term wealth. Furthermore, there are several additional factors developing in 2017 that may increase the probability of that being true, not only for wealth creation, but your internal rate of return (IRR) for that cash during the period of time in which you own the property. In plain English, the IRR is the return you get from using your new, hard earned, direct deposited, salary to cover your mortgage payments, taxes and insurance instead of rent paid to a landlord. This flow can create a significant return on your investment, especially when you sprinkle in the appreciation rate and tax deductions.
Yay! Sounds good, so let’s buy a house or two since mortgage interest rates are still historically low and home prices have modulated since the bubble burst in 2008. But you heard interest rates “are going up”. Yes, that is true on a micro-level, but the buying power of the low interest rates is still undeniably strong. For example, if people were getting 4% last year, but today you’d have to stomach the atrocity of a 4.5% fixed rate for 30 gridlocked years, that is a difference of $30 whole American dollars per month for a $100,000 of the loan. (Wait! Don’t fret, because you still have the ellusive IRR on your side).
Now chances are if you are looking to trade up your job, you might also be looking to trade up a home you already live in. If you purchased a home a few years ago, you can likely roll that equity into the new place when you sell that home in the spring market. The stress of selling your first house can be overwhelming, but 2017 has your back, because there are shockingly low inventory levels of homes for sale on the market, making every new listing get that much more attention and sell that much quicker.
Next, you’ll tell me you’ve got no equity, but you still want that bigger house because your new job helps you afford it. Seriously, no problem. Despite stricter mortgage lending practices since the great recession, there remains several high loan-to-value (LTV) mortgage programs ranging from 97 – 103% of the purchase price to help you into your dream home.
2017 is the perfect storm of good news for those dreaming of the first place to hang their hat or the place they can install their Griswold-Christmas-Bonus-Inground-Pool. Now get out there and get those resume’s flying because it all starts by ditching that terrible boss.
Cheers to a prosperous 2017.
About Rachael Bohac
Rachael Bohac is a licensed Realtor with Keller Williams Realty Metropolitan out of Bedford, NH. She’s been licensed since 2005 in the residential market and has additional specialties in multi-family, investment properties and financing solutions. With a M.S. in Marketing she brings an intense and comprehensive level of marketing to her listing clients.