When you’re a home buyer, winter real estate shopping can be hit or miss, even in warmer climates that don’t see snow. After the holidays have ended, many people are simply looking to get back into the usual groove of things. In January, most people with children don’t want to move because it is still the middle of a school year.
When you’re an investor, though, winter real estate shopping can be a blast. The typical seasonal wisdom of buying a home is thrown out the window when it comes to the purchase of commercial and residential rental properties. Because the owner of the property is changing hands, and not necessarily the occupier, there are far fewer concerns about mid-school-year-moving. And when building owners get back into the post-holiday groove, one of the new year tasks at the top of their lists could be selling an investment property.
Read on to learn why winter is great for real estate investing.
Low Interest Rates
The Fed has been helping to keep interest rates low with quantitative easing, and though it plans to pull back this year, interest rates are still at historically low levels. For real estate investors that may be utilizing a mortgage, now is a great time to move forward, before QE3 begins to really taper off. Mortgage interest rates could be higher if you wait even a few months.
Priced to Sell
It’s the middle of winter, so many of the residential buildings and houses that are on the market now are likely there because the owner has to sell. Often that means the seller will be willing to negotiate on a price, simply so they can get the building off their balance sheet. There may also be buildings in need of repair that could sell quickly and for cheap, as long as you’re willing to put in the time, money and effort to fix any issues.
Minimal Buyer Interest
With the holidays having just passed, the new year started and winter still in full swing, many people have their heads down, unburying themselves from the work that accumulated while they were having holiday fun. Not as many people are thinking about buying, as compared to warmer months. Now is the chance for investors to be looking, before typical home buyers start getting back into the mix.
Of course, real estate markets and real estate investing is highly local. In warmer climates in the U.S., home sales barely slow down in the winter, compared to summer months. It’s best to gather information on your local market to determine whether pricing and buyer interest could impact your real estate investment purchase.
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