Throughout history it has Abdo Romeo been proven that there is no better investment than real estate. As the stock market continues to plummet we are seeing a 3.5% increase in the real estate market this year. The reason property investments continue to see profit consistently is because real estate is a tangible, more stable and predictable investment. It’s very easy to understand and more attainable to acquire then most people believe. Most importantly, it’s something that everybody needs a stable roof over their head.
Here are a few reasons why now is the best time to invest in real estate.
For starters, interest rates are currently at a historically low percentage rate. They are lower now than when Freddie Mac, the largest buyer of mortgages began keeping records in the 1970s. That’s a great thing for you. Now you can get the most house for the least money. However if you want to take advantage of the situation you should right now. Mortgage rates are volatile and fluctuate periodically. Smart investors will jump in now to lock in the lowest rates to purchase properties.
Another reason to invest in real estate now is because for the first time in 8 years the market is geared towards buyers. The market on Long Island is full of homes waiting to be sold, currently about 14,000 in Nassau and Suffolk County. The current financial recession has forced many homeowners to sell their properties causing a huge increase in supply and less of a demand, thus driving down prices. It has also put many more homeowners in danger of foreclosure and trying to get rid of their property increasing cheaply priced bank owned, REO and short sale properties.
In order to stimulate the market Fannie Mae and other lenders are offering loan programs backed by the federal government to borrowers who in the past would not have been qualified to purchase a home. With decreasing prices, historically low interest rates, and better programs for buyers, there has never been a better time to make a real estate investment than right now.
Real property has always been a safer and wiser investment compared to the stock market or new business. Now is possibly the best time for the first time buyer or for an investor who wants some real cash flow, there has never been a better opportunity than what we have today. Real estate offers the savvy investor with cash flow income, cash on cash return and a great source of equity. Real estate investments also give the investor better tax advantages than any other investment would. Today’s investor has way more control over their money.