Why Now is a Great Time to Buy Real Estate
Smart investors can make money in any kind of market conditions, but sometimes certain circumstances can feel more challenging than others. Past generations have had to deal with the Great Depression, the Spanish Flu and two World Wars. Just as previous generations did before us, we will prevail no matter what. This is a good time to take a fresh look at how and where you invest.
Now is a Great Time to Buy Real Estate
Real estate will always be an asset that you can rely on. Many investors speak of legacy…buying for the security of future generations, whether that be family or significant others or friends. Now is a great time to buy real estate. The value of your real estate investment will never go to zero; it will never be worthless. Real estate has always appreciated in value over time, even though there are always ebbs and flows in the market.
Unpredictable Interest Rates: Pick Your Poison
While we hope it doesn’t happen, interest rates can go up! The boomer generation recalls rates as high as 17% in the 80s! While we can try to guess based on historical data, no one really knows for certain what will happen to mortgage rates — whether they’ll go back down, or when, or how far. The economy and housing market are cyclical, experiencing ups and downs, at times unpredictably, but they always recover. So how do you prepare for this…well, if you lock in now, you can refi your house when rates drop. Also, as Barbara Corcoran (of Shark Tank fame) reminds us, when and if rates drop, there’s going to be a frenzy to buy which causes prices and competition to spike. (If you have ever been in 12th position to buy a house despite over-offering (hello California in 2000), you can relate to this! As Barbara says, “So pick your poison. Buy now and lock in, or wait while your money depreciates, and then fight to buy an investment property at higher prices.”
Savings Accounts Aren’t Investments
The biggest mistake that you can make right now with your investment dollars is to leave them in a savings account. While interest rates have risen, your money is still not beating inflation. A savings account is a great place to save money to invest, but it’s not a good way to invest. In other words, your savings account is a holding account, not the method you use to make money. If you have approximately $30,000 to invest, we believe this is a great time to buy real estate. And when you’re ready to buy real estate, MartelTurnkey is a great place to start. Read more about that here.
Contact us for more information about investing in turnkey rentals, or to get your real estate investment questions answered. We love hearing from you, and we are here for you, as always.