We all realize the real estate market has been in a steep decline for
a few years now. Well, with the rising number of foreclosures across the
nation, this economy is in the pit of the pits. These foreclosure
statistics are among the worst we have observed in decades and Americans
everywhere are having difficulty scraping by in this tough economy.
The United States is experiencing the beginning of a recession. Things
will get worse before they get better. They will, however, get better.
They always do. You just have to be willing to wait it out.
If you want to invest in real estate, this may be the best time to do
so. With the mortgage rates being lower than ever before and the housing
prices also at rock bottom, there are so many opportunities to make a
good investment in the real estate market. This includes buying property
for both residential use and to rent out to tenants.
Everyone is affected by a fall in the residential real estate market. It
starts a chain reaction that has really just begun. People begin to be
laid off in the trades and stop spending money on entertainment or new
cars or furniture. The effect on everyone is shocking. The real estate
recession is like a virus out of control.
You should always look at your home as an investment. If you are renting
property now, realize that you are paying a mortgage for someone else.
You can be paying yourself that money as well as taking advantage of tax
incentives that are available to homeowners.
Investing in real estate in a down economy is actually the best time to
invest in real estate. You have to make sure that the property in which
you choose to invest is in an area which the homes have systematically
gone up in value. If you want to speculate, you can invest in an area
that is up and coming, such as a place where people are moving to get
away from urban sprawl. Track the patterns of growth in your area and
determine the next development boom. If, for example, the growth is
going Southwest, go to an area one point farther than the most recently
developed area and purchase property in that area. Because prices are
low as well as mortgage rates, this is the perfect time to do this. When
things get rolling again as far as developments, you may be sitting on a
goldmine.
If you own a home and still want to invest, consider purchasing a home
that you can rent to others. People always need a place to live and a
rental unit is usually a good investment. Because of low interest rates
and housing prices, you should be able to get a great deal on both
property and a loan. Loans for investment property that you plan to rent
are usually different than those in which you plan to live and in some
cases, you need to put down 50 percent of the property value to get a
loan, so be aware of that. However, the rates are still rock bottom so
this is a good time to buy.
If you are buying property that you plan to rent to tenants, make sure
it is in an area where people want to live so that you can be assured of
having a steady flow of income.
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