5 Reasons this a great time to invest in real estate
Invest in real estate: For aspiring home buyers and real estate investors, the million dollar question is: should we invest in real estate now?
Just like President Franklin D. Roosevelt said “Real estate cannot be lost or stolen, nor can it be carried away. Purchase with common sense and managed with reasonable care, it is about the safest investment in the world.”
Although there are quite a few available choices when it comes to investing such as stocks, bonds, and metals; when it comes to making wise investment decisions, you should take into consideration that real estate has a curb appeal that other financial assets can't match.
In order to make an informed decision, you should weigh the long-term return potential of real estate investing compared with other assets.
Playing the stock market requires a lot of knowledge and education; you have to understand how the system works and understand the intricate world of trading.
What most investors do not realize is that real estate is still one of the best opportunities available and it provides the best long-term returns compared to most types of investments.
There are a few key things you should keep in mind about real estate and how it can be advantageous to your situation.
Real estate value is increasing so consider to invest in real estate
The market has been on the rise starting in 2012. That was basically the year when prices hit bottom after the five-six-year bust. This has opened the door for many homeowners to buy properties for a smaller value compared to where prices were just 12 years ago. However, according to Zillow
, home prices have increased by 3% on average. They will probably continue to rais in the future. Therefore if you decide to purchase a property today you are likely to see the home’s value rise over the next few years.
Houses remain affordable so consider to invest in real estate
As most real estate pricing remains very affordable compared to the high prices of a decade ago. According to a report from Irvine, Calif.,-based RealtyTrac., 9% of counties in the United States had housing that was less affordable than historical norms. This means home buyers can purchase a property that meets their size and feature needs, as well as the location at an affordable price.
Loans are affordable so consider to invest in real estate
One of the main advantages of investing in a new house is being able to get a low-interest rate. Throughout 2015 and 2016, buyers enjoyed historically low mortgage rates. For many, mortgage rates are still significantly lower than they were a decade ago. The 30-year fixed rate in 2018 is expected to stay in the 4% range — 4.5%. Then rise to 5% - 5.5% by year’s end.
Real estate provides equity so consider to invest in real estate
You would receive any equity after you paid off your mortgage minus commissions & closing costs. Equity is the difference between your property’s market value and your mortgage balance. Building equity is one of the main benefits of home ownership. Real estate provides homeowners with the opportunity to build equity over time. At some point, you will have a valuable asset that you can use for almost anything you wish. Equity, helps homeowners to have built-in credit to tap into in case they need to do so.
Buying is cheaper than renting so consider to invest in real estate
On average in many areas, purchasing real estate and a home of your own can be more cost-effective.
has estimated that homeowners spend on average 15.7% of their income on monthly mortgage payments. Renters, are spending 28.9% of their monthly income on their living space.
Home-ownership is up to 26.3% cheaper than renting in 98 of the top 100 U.S major cities. According to the newest rent vs buy report by Trulia. Even though the rent vs. buy debate keeps oscillating right now. The figures point to buying as the better way best way to go. However, that will not always be the case. This figure has come down from Trulia's 2014 rent vs buy report that showed this figure at 38% cheaper.
With interest rates at historic lows, it is probably the best time to invest in real estate. And a strong rental market encompassing most of the United States,