Real Estate Investing - Is Now the Right Time?
Although this recovery will be slow, there is hope. Markets are cyclical and what went down, will go up. Now is the time to start positioning yourself to rebuild. Whether it's buying a small starter home that you can live in for two years and then rent out and move up or maybe you already own a home and you want to buy a second property. Now is the time to weigh your options.
Historically real estate has always been a sound investment. But in recent decades it has become so closely tied to the stock market that it made it volatile. With new rules in place, and hopefully lenders learning from their mistakes, real estate can become the trusted investment it once was.
The first generally accepted rule of investing is to diversify your portfolio. Stocks, bonds and other savings instruments are usually one component to a well diversified strategy. And even within those categories, you should consider your risk tolerance. A good financial planner or some well researched time and effort on your part will be needed in order to build up that part of your overall strategy.
For many, real estate investment is also an essential part of a well-rounded portfolio. For me, being a real estate professional, I prefer real “bricks and mortar” investments, not paper. Something I can drive by and say, “Yep, that’s mine and it’s still there”!
Historically, buying and selling real property, or even long-term home ownership, has proven one of the most profitable, least risky investments available. Note: I say "least risky". That doesn't mean "zero risk" as we have all clearly witnessed over the past 4 years years. There's no such thing
as zero risk in investing. Markets are cyclical and prices can always go up or down, just like stocks, bonds, etc.
Doing your homework and getting an experienced adviser on your side is key. Get educated about the rental and resale market where you want to invest. And know your limits and goals before you dive into any major investment.
Mortgage rates are historically low now and home prices have fallen since their peak - although they are rising now. Some states and cities saw larger fluctuation than our area, which is relatively stable.
As a professional Realtor in this market for nearly 20 years, I'm here to help you every step of the
way. Whether you are new to real estate investing or a seasoned pro, I can provide you with all of the resources you need to make the best decisions for your financial future. Give me a call today for a free, no obligation consultation to discuss your personal investment strategy.
