Five Reasons Start Investing in Real Estate Again

Just like any other financial market real estate continually cycles through its highs and lows. There can be great debate on whether the market as a whole is at its bottom, but there is a growing consensus that many markets have hit bottom and now is a great time to start investing in real estate.

Here are five fundamental reasons to start investing today.


1.Price: The sales price in almost every market has dropped substantially. When your combine the effects of short sales, foreclosures and bank owned properties with an already saturated market this makes for a real steal for those that have a good game plan and care due diligence.

2.Inventory: Inventory is at an all time high in most markets, which only contribute to the falling prices, but also helps with selection. Investors should not only look at the sale price and appraised value, but they should look very care full at the rental market in which they are selecting a home from. Some times passing on a little equity to capitalize on a strong rental market can have both short term and long term benefits, also known as cash follow.

3.Interest Rates: Current economy conditions have pushed interest rate down to historical lows. Investors that are considering long term holds will benefit the most as interest rates and inflation increase over the next few years so will the rents.

4.Seller Expectations: Most sellers including banks are now working hard than ever to move their properties. This not only translates into lower sells price, but more concessions. Sellers are now willing to pay closing cost, pay to help buy down the rate, or help pay for repairs.

5.Renters: As more and more individuals foreclose on their home the rental market will continue to increase. There are a number of individuals bought the wrong home at the wrong time for the wrong amount and that led them to be upside down on their house. Many of these home owners have and will continue simply foreclose. These new renters that have great income can and will be able to afford larger rental amounts.


Keep in mind every market has a bottom; it is up to you to do the due diligence that leads to a successful real estate transaction.