There has clearly never been a better time to buy a home as your personal residence, but is this a good time to actually invest in real estate?
It is true that we are still working through a large number of foreclosures that need to be recycled before we see a complete rebound and stable, long up turn in the housing market. However inventory numbers are dropping across the US with an average of just over 8 months supply on the market. A normal, healthy market is considered to be achieved with a six month supply of homes, so we really are not that far off. Plus once summer comes around we ought to see inventory levels dip even further as the good weather and rush to relocate before school starts kicks in.
This is definitely still not a good time for speculative buying, though that has never been a long term winning strategy for successful real estate investing anyway. However there are many incredible opportunities on the market for those who buy right.
For those flipping homes the prospects have only gotten better. Instead of speculative buying and paying top dollar, with just the hope of reselling to another investor using an inflated appraisal there are now thousands of deals available for pennies on the dollar. This means being able to buy homes at 40-60% of their value and either wholesale them to other investors quickly for a small profit or rehab them and put them on the retail market for huge spreads.
Those with the long term in mind who are looking into real estate investment for generating income and building wealth for later in life or to leave for loved ones will find that there has never been a better time to build a portfolio of rental properties. Buying now you can not only lock in large amounts of equity, but with today's incredibly low mortgage interest rates can lock into amazing levels of monthly cash flow.
The current conditions in the housing market present a unique opportunity for building real wealth, not just making a quick buck, and an opportunity that most of us old enough to read this article will never witness again during our lifetimes.
It is true that we are still working through a large number of foreclosures that need to be recycled before we see a complete rebound and stable, long up turn in the housing market. However inventory numbers are dropping across the US with an average of just over 8 months supply on the market. A normal, healthy market is considered to be achieved with a six month supply of homes, so we really are not that far off. Plus once summer comes around we ought to see inventory levels dip even further as the good weather and rush to relocate before school starts kicks in.
This is definitely still not a good time for speculative buying, though that has never been a long term winning strategy for successful real estate investing anyway. However there are many incredible opportunities on the market for those who buy right.
For those flipping homes the prospects have only gotten better. Instead of speculative buying and paying top dollar, with just the hope of reselling to another investor using an inflated appraisal there are now thousands of deals available for pennies on the dollar. This means being able to buy homes at 40-60% of their value and either wholesale them to other investors quickly for a small profit or rehab them and put them on the retail market for huge spreads.
Those with the long term in mind who are looking into real estate investment for generating income and building wealth for later in life or to leave for loved ones will find that there has never been a better time to build a portfolio of rental properties. Buying now you can not only lock in large amounts of equity, but with today's incredibly low mortgage interest rates can lock into amazing levels of monthly cash flow.
The current conditions in the housing market present a unique opportunity for building real wealth, not just making a quick buck, and an opportunity that most of us old enough to read this article will never witness again during our lifetimes.
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