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Regardless of the conflicting reports you may have heard from the media, right now is a phenomenal time to be investing in real estate. Very simply put – the market is amazing. Whether this means finally buying your dream home, investing in a second property for vacations or embarking on the rental property world – now is the time. And here’s why:
Low Price of Homes
Buyers today have the unparalleled ability to buy more home for the same amount of money, given the low housing prices. In fact, if you consider the price of real estate across many markets just a few short years ago and compare them to the values on paper today – it seems almost impossible what you can get these days.
Take the example of a home that might have been worth $400,000 some years ago. Today, that same home is likely worth about half at $200,000. If the homeowner were to sell and purchase a home currently valued at $400,000 they would end up in a home that was worth $800,000 back when they purchased their original home. The savings amount to a whopping $200,000 in this case and the end result is living in a dream home that will one day likely recover a lot of its one-time value.
Low Cost of Financing
With today’s unprecedented low cost of financing the cost of a mortgage is actually affordable. For some time now buyers have been enjoying record-setting low interest rates that have allowed even the most cautious homebuyer to afford a home. New construction is making a comeback despite the steady costs of labor and building materials but it is possible since buyers are paying much less in interest charges each month.
As our economy continues to strengthen, albeit slow and steady, there is no guarantee how long the fed will allow these mortgage rates to be so low. Some markets are already seeing an increase in rates but they are still lower than they have been in most people’s entire lifetime. Before your buying power is diminished it is a good idea to explore the options.
Prime Rental Rates
Many areas of the nation are showing signs of strong investment interest. Whether buyers are looking to invest in a second family vacation or resort property or purchasing new real estate to be able to rent out – investors are finding this a great environment to buy in. Some markets have little to no vacancy allowing landlords to charge premium rental rates on their properties.
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What used to sell for a million back in the day is now available for half that! If you think back to that time, do you remember driving by those homes knowing that you would never be able to afford them? Well now is your chance. But there is not a lot of time left. While no one can really say in advance when a market will bottom, one thing is certain – rather than join the ranks of people that did not seize the opportunity while it presents itself, wouldn’t you much rather be enjoying your dream home starting now?
If you would like to brainstorm your options, plug in some realistic numbers to see what it would cost to own your dream home today, contact me today so we can get to work on capitalizing on this absolutely phenomenal opportunity that will not last forever.
