Buying a Home Today: The Opportunity of a Lifetime

By Steve Harney
Inman News’  2011 100 Most Influential Leaders in Real Estate
Author Keeping Current Matters

More and more research is coming out showing that it makes great financial sense to purchase a home today. Whether it is rent-vs.-buy ratios, income-to-price ratios or income-to- mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms.

If we look at the COST of a home today compared to pre-peak prices, we can truly understand the tremendous savings available in today’s real estate market. According to the S&P Case Shiller price index, residential real estate values have returned to 2003 prices nationally. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.

In 2003, 30 year mortgage rates stood at 5.83%. Today, they are under 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:

You save $278.12 a month, $3,337.44 a year and $100,123.20 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST has been reduced by more than $100,000.

This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

Insider’s Look: East Greenwich, RI

This month’s “RE/MAX Around New England” takes a look at East Greenwich, RI.

East Greenwich is nestled next to picturesque Narragansett Bay. It’s located directly in the middle of the state and is less than 17 square miles in size. Commonly recognized for its scenic water views and historic charm, East Greenwich is a popular destination for Rhode Islanders to reside in or visit. The town was established in the 1600s and flourished into a popular trading center because of its protected cove that brought ships from around the world. Today, East Greenwich is still very proud of its rich history and takes pride in its National Historic District.

For this issue of “RE/MAX Around New England,” we spoke with David and Len Iannuccilli of RE/MAX Professionals.

1. What is the median price of a Single Family home?

The median price of a single family home in East Greenwich is $290,000. The town offers a wide array of housing options for many different demographics.

2. What is the public transportation system like?

Rhode Island has a well established bus system called the Rhode Island Public Transit Authority (RIPTA). Residents can travel anywhere throughout the state for a minimal fee. East Greenwich is also conveniently located near the airport and train station.

3. What is access to major highways?

East Greenwich is very accessible to major highways. It’s located just minutes away from I-95. Route 4 and Route 2 are also conveniently located nearby.

4. How are the school systems in the area?

The school system in East Greenwich is ranked among the top five in the state. Students typically score well above average on mandated standardized tests. There are several public, private, and religious schools to select from within the town. Currently, there are around 2,400 students enrolled in the East Greenwich public school system.

5. Who is attracted to this area?

This area attracts people of all demographics because of its historic charm and beautiful scenery. Primarily white collar workers are most attracted to the area. East Greenwich is considered the wealthiest municipality within the state and many choose to live here because of the opulent lifestyle the town offers.

6. Total population?

The total population of the town is 13,000 year-round residents.

7. Average age of population?

The average age of a female in East Greenwich is 43 years-old and the average age of a male is 41 years-old.

David and Len’s Five Faves in East Greenwich:

1. Best Lunch Spot: If you’re craving Mexican food, you have to check out Tio Mateo’s Mexican Grille. There’s no shortage of delicious burritos, tamales, and fresh salsas. It’s a great place to spend during your lunch break.

2. Best Area to Explore: Goddard Memorial State Park is one of Rhode Island’s most popular parks. It offers visitors miles of trails for walking and exploring, as well as a gamut of outdoor activities to participate in.

3. Favorite Thing to do on the Weekend: Greenwich Bay is a wonderful place to escape to after work or on the weekends. Spend an afternoon sailing or paddling around the bay and take in the breathtaking views.

4. Favorite Street for a Stroll: Visit Main Street and stop in one of the several fine restaurants, coffee houses, or eclectic shops. You can often find local artists showcasing their work and musicians performing.

5. Best Place to Eat Dinner: If you’re craving Italian food, Siena is hands down the place you have to go. Featuring authentic Tuscan cuisine in a warm and lively atmosphere, Siena is the perfect place to spend an evening out.

To learn more about East Greenwich, RI please contact David or Len Iannuccilli of RE/MAX Professionals.

David Iannuccilli

RE/MAX Professionals

655 Main Street

East Greenwich, RI 02818

401-884-6050 x 359 Office

401-884-0665 Fax

davidi@sellri.com

Len Iannuccilli

RE/MAX Professionals

655 Main Street

East Greenwich, RI 02818

401-884-6050 x 337 Office

401-884-0665 Fax

len@lennyland.com