Within the past few months we’ve seen a large amount of economic news that has not been kind to most of us. We’ve seen wild swings in the stock market, a government that continues to chase the snowball downhill and one that will continue to do what it can until it somehow gets in-front of the market once again. We’ve seen mortgage rates go up, come down, go up and come down once again. However, rates have continued to sit between 5-6% for a while now, which in anyones book is a great rate. We’ve seen international markets, and entire countries, struggle with the same issues we have here in the US. All of this has served to keep many real estate investors sitting on the sidelines while waiting to see how low it will all go.
The reality is that you can’t time the market. Very few people have ever had great success at doing just that. Most of the time you either miss the peak and start buying and/or selling on the way down, or you miss the bottom of the market and jump back in as prices start to increase. Real estate runs in cycles. In South Florida we’ve been blessed to miss a lot of the highs and lows seen in other parts of the country over the years. The real goal for investors is in buying real estate that makes sense of the long term. The markets will rise again and the motivation and flexibility that sellers afford buyers today will be long gone and real estate will once again regain its good name as being the best long term investment available.
Now I’m not talking about the speculators that drove the frenzied markets of 2000 to 2005. What I’m talking about is the investor that sees the sense in buying a piece of property that with 20 -30% down payment will positive cash flow and over the years will provide them with equity build up and excellent tax benefits in addition to appreciation. The appreciation will return positive…. so this market gives you the best chance to optimize all the factors of investing in real estate.
Although many investors, ourselves included, have been hurt to varying degrees by the turnaround in real estate values, it does not change the fact that today’s market represents one of the most incredible opportunities to make money buying and holding real estate. There are some “buys” out there that are simply incredible. Whether you buy a “short sale” or a foreclosed property, or one that is just a great value from a seller that has to move, there are properties that easily meet all the criteria above.
In the past few weeks we have once again been involved with purchases that had multiple offers. Yes… you read that correctly! When a property is priced well (under market value) and is seen as a good opportunity it does not last long and draws the attention of buyers and investors. As we tell our sellers “You’re in a price war and a beauty contest”. For the sellers that want to win that contest they have to be priced well and be in good condition. For investors it a great time to take advantage of this market.
Contact Gail to find out what some of the great buys in today’s market are!