Why is it a Great Time to Buy Real Estate?
Why is it a Great Time to Buy Real Estate?
In the year 2000, a movie called "The Perfect Storm", starring George Clooney hit the movie theaters. If you recall, it was so named because all of the conditions that make for a most spectacular atmospheric event came together at the same time. If you are an investor or just a buyer who has been looking to buy real estate, we are at the proverbial "perfect storm" time to purchase real estate. The price of real estate is at or near the bottom, money is about as cheap as it's ever been, and choices are abundant. In fact, despite the mortgage crisis, if you have good credit, a job and steady income, you'll find there is still plenty of mortgage credit to be had at good rates. Investing 101 tells us that you should buy low and sell high, so that should be your first clue. Secondly, homeownership has a track record that is virtually unmatched by any other purchase in terms of real benefits. Home ownership still reigns as the single largest creator of wealth for many Americans. Over the long term, real estate has historically appreciated 5-6% annually. Look at this example: say you put 10% down on a $200,000 house, for an investment of $20,000. At a 5% annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year. Earning $10,000 on an investment if $20,000 is an incredible 50% annual return. In contrast, putting that $20,000 down payment into the stock market and getting a 5% gain would yield only a $1,000 profit. Buy the way, not only do you gain the confidence that buying real estate is a good investment monetarily, but real estate is a tangible investment that will yield years of enjoyment and creation of memories with friends and family that last a lifetime.
In the year 2000, a movie called "The Perfect Storm", starring George Clooney hit the movie theaters. If you recall, it was so named because all of the conditions that make for a most spectacular atmospheric event came together at the same time. If you are an investor or just a buyer who has been looking to buy real estate, we are at the proverbial "perfect storm" time to purchase real estate. The price of real estate is at or near the bottom, money is about as cheap as it's ever been, and choices are abundant. In fact, despite the mortgage crisis, if you have good credit, a job and steady income, you'll find there is still plenty of mortgage credit to be had at good rates. Investing 101 tells us that you should buy low and sell high, so that should be your first clue. Secondly, homeownership has a track record that is virtually unmatched by any other purchase in terms of real benefits. Home ownership still reigns as the single largest creator of wealth for many Americans. Over the long term, real estate has historically appreciated 5-6% annually. Look at this example: say you put 10% down on a $200,000 house, for an investment of $20,000. At a 5% annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year. Earning $10,000 on an investment if $20,000 is an incredible 50% annual return. In contrast, putting that $20,000 down payment into the stock market and getting a 5% gain would yield only a $1,000 profit. Buy the way, not only do you gain the confidence that buying real estate is a good investment monetarily, but real estate is a tangible investment that will yield years of enjoyment and creation of memories with friends and family that last a lifetime.
Brett Binkley
Sales Associate
Pat O'Brien and Associates
(231) 582 1801 Office
(231) 590 8230 Cell
(231) 582 1714 Fax
e-mail me!
www.patobrien.com
www.goliveupnorth.com
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