Written by Blake Bauer
on Monday, 06 October 2014
Many investors have given up on their dreams in the real estate market. However, it’s the time to give it another serious look and consider latest trends in the industry. Statistics show that repossessions and foreclosure are decreasing, while construction projects are on the rise. Compared to the same period last year, sales of residential have increased for about 17 percent in May 2014. The annual median property sales are already up by 11 percent and it is the largest increase since a few years ago. The conditions are clearly optimal. Given the situation of today’s economy, we are seeing high demand for housing, decreased interest rates and low property prices. So, this is a good time to profit well from properties.
Here are five great things about today’s real estate investing:
1. Prices start to bounce: It is a basic concept to purchase assets when the prices have bottomed and started to rebound upwards. After the market lows that we have witnesses, we could expect to see strong appreciation in coming years. The prices of housing will rise steadily this year and it is a good time to invest in rental properties, both from business and personal finance perspectives. Overall, the earlier we act the more profit we will accrue.
2. Property prices are very affordable: To get a good deal you need to do a lot of “fishing” but the prices are still well below their highest levels in 2007. Mortgage rates are remarkably low at just around 3 percent. This allows us to get affordable monthly repayment and owning investment properties is a good way to attract more wealth. We shouldn’t underestimate the value of income property equity in these market conditions.
3. Rental prices have soared: Home ownership is a dream for many families, especially for those who have recovered from previous financial crashes. The mortgage rates are low and this is an opportunity for people who still live in rental accommodations. Demands for rental houses have driven up costs and prices are still at all time high. This situation is also an opportunity for property investors who want to see their investments to appreciate while getting stable monthly returns.
4. Capital is more accessible: Other than standard bank loans, more and more private capital investors are able to provide financing for parts of the returns. They have invested in hundreds of thousands of homes across the United States. Real estate investors could consult the PERE 50 to gain insights on options available to them.
5. It’s possible to become stress-free landlords: This year, being landlords won’t cause headache anymore. The rise of service-oriented businesses and technology-based solutions make it possible to gain more with just a fraction of the energy and time. It’s possible to go it alone or offload the burden completely to reputable property managers. We could use online solutions and apps to analyze investments and collect rent.
We have seen first-hand how immense wealth people gain from income properties can transform their families and lives for the better. It’s a great time to make our move, especially if we are passionate about getting more from the promising real estate investment.