Acquiring Real Estate to Generate Money is Still Doable in Today’s Market

By Harold, 26 September, 2009, No Comment
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For many years, investors have been buying real estate in order to make money and create wealth. Today however, the media will have you believe that the real estate bubble has exploded and that you can no longer pull in money acquiring real property. Newspapers and television accounts love attention-grabbing headlines. However, are headlines grounded on facts or planned to induce you to tune in?

Look at how the headlines could read.

Real Property Costs Plummet or Real Estate Prices Slump a Little

Back in 2006, the typical real estate property price across the country dropped only 1.7%. That number surely does not point a bust in the real estate market. The manner in which property values went up during the last ten years, that descent is more of a bump in the road rather than a huge tragedy. Since majority of investors buy low and sell high, a 1.7 percent drop in prices would not mean that investors can’t generate a profit acquiring homes.

The United States’ Housing Market Collapses or the United States Still Requires Housing

According to news reports, the turn to a buyer’s market shows that a lot of houses languish on the market. Nonetheless, the number of new homes being formed and an increasing population continues the pressure on the real estate market. The United State’s expanding colleges and universities continue to turn out qualified grads who require housing.

Mortgage Rates of Interest Escalate or Interest Rates Still a Good Buy

Even though headlines say rates of interest are moving up, long-term mortgage rates of interest are just more or less a percentage point more than historic lows. Numerous investors remember paying 12 percent or higher interest and consider today’s rates of interest to be a genuine deal.

Unemployment Ascends or Employment Secure

Several news stories spotlighted areas where individuals were losing their employment. Butt, national unemployment rates are lower than any time in the last five years. America’s unemployment rate shows that Americans are in a better position to make their house payments and are going to continue to qualify for new mortgages.

Economy Troubles or Consumer Buying Tendencies

Newspaper headlines exclaiming that the US economy is destroying itself are countered by consumer economic votes. Every dollar spent is considered. Consumers cast their votes and spent an unprecedented amount on Halloween ornaments, confections, and dresses. Consumers with no available income are not going to buy candy instead of healthy food for their children. Home improvement spending is also at an all time high. Consumer shopping bolsters up America’s economy.

What do these headlines mean to property investors? Informed investors can still make money buying homes.

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