Listen and subscribe to Financial Freestyle on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. First-time buyer and investment specialist Matt Garland, also known as "MG The Mortgage Guy," uses his 21 years of experience as a mortgage broker to educate the public about real estate. In this episode of Financial Freestyle, Garland joins Ross Mac to break down mortgages, the importance of homeownership, and his predictions for the 2025 real estate market.
Garland sees himself as a homeownership and real estate investor advocate, especially in the Black community. Garland breaks down the basics of investing in real estate into what he calls the triple Cs: credit, capital, and capacity. Credit includes both credit score and credit utilization. Capital is the money needed to buy real estate. And capacity refers to the capacity for knowledge and resources.
One area where Garland thinks most people get things wrong is real estate financing. "Most people look at debt as bad, but I look at a mortgage debt as a good debt because it gives you the ability to buy real estate," he said. When buying a primary residence, he recommended financing as much of it as possible. "I'd rather use the bank's money and finance as much as I possibly can on this property, so that way I can use my capital for other things and other investments so I can make money," he said.
Garland also offered his predictions for the 2025 real estate market. "If you look at 2024, you have markets that appreciated 3.5% to 10%, and I believe 2025 is going to repeat that process," he said. Many people can't afford current interest rates and housing inventory is low, but Garland says mortgage applications will go up if interest rates drop. "We have pent-up demand in the market right now with interest rates being in that 7% to 8% range pretty much all of 2024 and now 2025," he said. "Once those interest rates start to drop, [will] we get anything in the in the fives this year? Forget about it. People are going to be running back in the streets trying to take advantage."
For Garland, it all comes back to capacity, which he views as the most important concept of the triple Cs when it comes to buying real estate. "That knowledge, if you are really focused and you're learning, you'll be able to spot the trends and be able to know exactly which way you need to go." Financial Freestyle with Ross Mac on Yahoo Finance is dedicated to promoting economic prosperity for all. Through expert insights, practical advice, and inspiring success stories, we empower you to build and grow wealth.
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