Last September I started watching an obscure corner of the monthly sales report generated by the Sacramento Association of Realtors. It was the part telling what percentage of homes sold in the county and in West Sacramento were priced…
This real estate article was posted from Home Front real estate blog
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The question of the year is should I buy now? If your intentions are to buy and hold for a minimum of 3 years but preferably 5+ the answer is a resounding YES. If you are a flipper then you better do your diligence or it could cost you. Real Estate makes such a great investment because of the simple concept of leverage. Let’s look at this with the simplest of situations. You are going to buy a $100,000 home and you are going to put down 10% or $10,000. Over the next 3 years market conditions remain dismally slow and the home only appreciates by 3% a year making it worth $109,272 in 3 years or $115,927 in 5 years. Lets assume you have to sell in 3 years for work and your closing costs are 7% your return on investment would be a small $1622, however, that is an average annual Return on Investment of about 5.4% a year and during that time you were able to enjoy the tax benefits of writing off the interest you paid on $90,000 adding to your return and the mental benefit owning your life. Anyway, whichever way you slice it this slow market scenario is far better then throwing rent out the window or living with your parents.
So once again to answer the question — YES — All of the market indicators are pointing toward market acceleration by the end of the year. Get in now while negotiating power is still at it’s strongest and ahead of all the “buyers” that are “waiting it out” who are going to catch themselves paying a lot more by the time they pull the trigger.
I want to hear some discussion out there - send me some topics you would like to debate, research, or just plain old get off your chest. Like why is it socially acceptable to take a half day off to play golf but not to go for a hike with your dogs — Kiteboard — play with your kids or any other activity that is not viewed as professional? Lets hear it-
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Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
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In everything, there is always advantages and disadvantages. When you do something, there’s always risk involved. And whether you’re ready to take the risk or afraid to, it’s all up to how you look at it.
The same thing in real estate investing. Some say it’s a risky business, other’s say it’s not. There are also others who think it’s risky business, but are willing to take the risk. These people have different perspectives on life. And this perspective will lead them to their success or failure in the real estate investing business.
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It is unfortunate that some retired people are still working when they should be enjoying life. Retirement should be spent doing your favorite activities, spend more time with your family or travel around the world. It might sound impossible, but it can happen with proper planning and knowing where to put your money. So, how can you have a comfortable retirement? The answer is investing in real estate.
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