… it’s pretty much ALWAYS a good time to real-estate estate.
But there are two BEST times to buy real estate:
1. When REAL ESTATE is on sale
This means that prices are weak, or you can buy the property at a real discount (I don’t mean when the developer listed the property at an inflated price then ‘discounted’ it later!), or you can buy it and ‘tweak’ it (renovate it, change its use, or add value some other way).
2. When MONEY is on sale
Historical interest rates hover around 8% (they have been much lower for the past few years … but, remember when they hit 15%?!), but when they drop below 6% money is ON SALE! This means that you can afford a much larger mortgage payment, and rents can even be higher than your mortgage payment.
Usually, property prices and interest rates work in opposite directions:
When money is cheap real estate prices go sky high (remember what happened to property prices in the last few years?).
When money is expensive real estate is usually cheap (at 15% interest rates, who can afford to buy?).
Soon … or, even right now for some real estate in some areas, for perhaps the first time in living memory, BOTH real estate and money is ON SALE!
This is the big double whammy that you can’t afford to miss out on. How to you take advantage of this?
BUY real estate …. but, do your research: some areas are still dropping … look for areas that have bottomed out (or look for emerging markets) or you feel are close to it.
Now, here’s the secret …
If real-estate still drops a little, it doesn’t matter! Why?
Because, you will:
1. Buy and hold for the long run
2. You will make rental income (that will increase over time, while your mortgage payments stay flat, assuming you fix the rates)
3. You will lock in your finance for AS LONG AS THE BANK WILL LET YOU … because MONEY IS ON SALE and you want to keep buying it at that price for ever if you can!
There will be plenty of opportunity here to make mistakes … but, the combination of cheaper property prices, incredibly low interest rates (compared to historical averages) and holding for the long term will correct any small errors in judgment made now.
Open your eyes to the bargains that should start appearing soon (if they haven’t already) and …. buy!
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