Five reasons to start investing in real estate again
Author: Troy Schuricht • URL: http://www.communityfirstfinancial.comApril 10th, 2008 •
Just like any other financial market, real estate continually cycles through its highs and lows. There can be great debate on whether the market as a whole has bottomed out, but there is a growing consensus that many markets already have. Either way, now is a great time to start investing in real estate.
Here are five fundamental reasons to start investing today:
- Price: The sales price in almost every market has dropped substantially. When you combine the effects of short sales, foreclosures and bank owned properties with an already saturated market, this makes for a real steal for those that have a good game plan.
- Inventory: Inventory is at an all time high in most markets, which only contributes to the falling prices, but also helps with selection. Investors should not only look at the sales price and appraised value, but they should look very carefully at the rental market in which they are selecting a home. Sometimes passing on a little equity to capitalize on a strong rental market can have both short term and long term benefits, also known as cash flow.
- Interest Rates: Current economy conditions have pushed interest rates down to historical lows. Investors that are considering long term holds will benefit the most as interest rates and inflation increase over the next few years; so will the rents.
- Seller Expectations: Most sellers including banks are now working harder than ever to move their properties. This not only translates into lower sales prices, but more concessions. Sellers are now willing to pay closing costs, help buy down the rate, or assist in paying for repairs.
- Renters: As more and more individuals foreclose on their homes, the rental market will continue to increase. There are a number of individuals that bought the wrong home at the wrong time for the wrong amount and now they are upside down on their homes. Many of these homeowners have and will continue to simply foreclose. These new renters that have great income can and will be able to afford larger rental amounts. li>
Keep in mind that every market has a bottom; it is up to you to do the due diligence that leads to a successful real estate transaction.
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Joshua Dorkin
Charles Feldman
Ted Karsch.
Richard Warren
I think it is always a good time for investing. If you can buy your investments cheap then you gain when the market improves.
Good points. I’ve noticed over the last year that rents are finally starting to rise.
yes rents are rising..but we cant stop our investment for that..so better to invest
Award-winning, nationally-syndicated columnist, television reporter, radio talk show host and best-selling book author Ilyce Glink talks about buying a home as an investment in a short YouTube video:
http://www.youtube.com/watch?v=5eS4cK83Dl4
To get more great real estate and personal finance tips visit Ilyce’s YouTube site and subscribe!
I have been talking about these exact reasons with my friends and colleagues. I’ve also heard talks about November being a big month to buy.. for some reason that is unknown to me. Great post!
[...] Five reasons to start investing in real estate again, by Tony Schuricht. [...]
bottomline, what really matters is a wise investment
Let’s not forget the best reason of all — people need roofs over their heads and investors can help provide those!
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Great reasons, but you left one out. The stupid money has left the market so there is less competition.
Ned
but that is not much safe business.. it is really profitable but not safe.
These are really motivating reasons…Those reasons view the recent condition from very different perspective.
It is always a good time to invest as long as you know what you are doing.
hey why not… less competition, so you invest more effective