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Investor Alert! The Perfect Storm has arrived!
It you aren't a real estate investor, you should consider becoming one. If you already own real estate as an investment, you might want to consider adding more.
Below are some of the factors that are creating the perfect storm for investors in the marketplace:
-Interest Rates at around 5%...that's cheap money.
-Housing Prices are entering the 5th downward year.
-Strong rents, and a demand for rentals, since a large portion of former homeowners are now tenants.
-Distressed sales- short sales and foreclosures account for more than half the market- there are some real deals out there.
-Lending- many traditional buyers are having trouble getting financing but investors with good credit, savings, income and assets head to the front of the line.
-Better investment returns- how is your money market account treating you at a 1% return?
About 1/3 of my business last year were investors and I expect this year to be more around 50%. The agents, owners, and investors that I talk with, who have been around long enough to witness the last down-turn, all have the same regret: "I wish I had bought more". Many of them are even saying the conditions right now are better than the last downturn- interest rates, rents and prices!
Just to stay un-biased, here is a LINK to a blog from Forbes Magazine about an author turned off by the housing market- he brings up some good points about the negatives of owning property. Homeownership isn't for every one, but in my opinion, it is for most.
