Is this a good time to buy investment properties and invest in real estate?
As a real estate agent / mortgage broker … I often ask this question. It is a good time to buy real estate for investment purposes – reference income to produce real estate.
The answer is yes!
The reason is – the real estate market has softened, there are more real estate to choose from. It's easier to negotiate the price and terms of your favor. Interest rates have been low. Owners are becoming tenants, rents rise instead of falling.
This means crazy, buy your first property. of course not! In all markets, you have to be selective and set goals / plans that you want to achieve. You can make a lot of money in real estate, you can lose money if you are not careful. Common sense … You will be surprised at what I saw in my career!
Buy Investment Real Estate What are the advantages: (ACES)
A is to appreciate – Think of a form of appreciation, while in the upward market, the price rises over time. There are actually two less obvious forms of appreciation. Mandatory appreciation and purchase appreciation. Forced appreciation is when you can do some renovation and refurbishment, so that the property immediately increase the value and purchase the appreciation is to buy a cheap price / lower than the market value and built-in appreciation
C is the cash flow – The investment real estate is not an unadjusted novice. The only time it makes sense, if you feel that appreciation is so strong, it is worth the risk. On the other hand, the positive cash flow attribute is ideal. I have sold a lot of real estate, and a novice investor is generating a net cash flow of $ 500 to $ 1,500. The opportunity is to find the perfect cash flow properties perfect. Lower prices, lower interest rates, rents are still high, rising, because now there are more buyers than buyers. Just think of all the people, because the economy has lost their homes … they are now renters.
E – is the equity construction. In other words, part of your monthly mortgage payment will repay the balance of your property and building equity mortgage. Guess what – your tenants are helping you to repay your loan while you offer them a good place to live. It is win-win.