The number of houses on the market GREATLY exceeds the number of
potential buyers. What does this mean? A nationwide recession for the
real estate economy. However, the circumstances have become so poor in
San Diego and Miami that many are predicting a full blown depression
causing mass panic in terms of investing.
Real estate investors who were really raking in the money during the
high times are now seeing the market at rock bottom. Many real estate
investors have given up real estate investing and have turned to other
investments. However, there has actually never been a better time to
invest in real estate than right now, for two reasons.
The first reason is that a real estate recession causes homes to plummet
in value. They will go up again, but it will take a few years. In the
meantime, a smart investor who is searching for a long term investment,
can buy real estate and either rent it out to other individuals who need
a place to live or live in the property. If the property is vacant land,
it can just be left alone. There is much more real estate for sale than
there are buyers. This means the prices are lower than if there were
more buyers than homes. Take advantage of this fact and buy something.
The second reason why this is such a great time to purchase real estate
is because of the low interest rates. The interest rates for mortgages
have never been lower than they are right now. And because people are
not investing in homes and have pretty much saturated the refinance
market, lenders are desperate to make loans. If lenders cannot make home
loans, they go out of business, plain and simple. They are willing to
make a lot of deals that they were not willing to make 20 years ago.
Even people with less than good credit can get home loans, so if you
think your poor credit is going to stop you from getting a home, think
again.
Smart investors are thinking of this market as a reason to purchase.
Real estate is a tangible asset and something that everyone needs. We
all need shelter. If you do not want to live in the home yourself, you
can rent the property to other individuals. If you choose to rent to
tenants, you might want to institute a rent to own policy in which part
of the rent the tenant pays you goes towards the down payment of the
property when the tenant is able to purchase the home. There is a time
limit on this and this presents a tenant more of an incentive to pay
their rent on time as well as take care of the property.
If you are searching for a home in which to live, this is a great time
to purchase. You can get a lot more bang for your buck, especially in
upscale neighborhoods that were hit hard by the recession. And because
the interest rates are so low, you will be shocked at how much you are
able to afford. A real estate recession is tough, but this is a good
time for smart investors to buy low and wait out their investment for
the long term.
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