Seeker 1313
Padawan Learner
Hi Anart,
I'm resposnding to your question about why real estate is a viable option considering the current market situation. If you look at the housing market most of the homes being lost are in the low income range, not the higher ends. When you are investing their is a concept called dollar cost averaging, this means that when your investment is down your dollar buys more and when it is up, your dollar is worth more. Buying a rental home in this market is the perfect opportunity to make money. You can negotiate a better deal on a home because there are so many available and then rent it out. Make sure there is a market for your rental ie.. speak with a company that manages rentals and pay them a fee to help you find a good renter including a back ground check. Then you manage the property every month. Evereyone needs a place a to live and in a few years you will build equity in this home, if the home also appreciates in value then you have made even more money.
The housing market has been bad before like back in the 1980's when many homes sat vacant, and many were forclosed upon, and you could not get a home loan under 10%. I'm simply suggesting that you buy low now and sel higher later. I have money sitting in CD's in the back drawing 5% interest and I have to pay taxes on the money I earn. However, if i invest in a second property in July when one the CD's matures I will be making an investment and be able to deduct my expeneses, taxes, and interest. The housing market is presenting great opportunities for the future---if you doubt that just look at how many foreign investors are buying in this country right now.
I'm resposnding to your question about why real estate is a viable option considering the current market situation. If you look at the housing market most of the homes being lost are in the low income range, not the higher ends. When you are investing their is a concept called dollar cost averaging, this means that when your investment is down your dollar buys more and when it is up, your dollar is worth more. Buying a rental home in this market is the perfect opportunity to make money. You can negotiate a better deal on a home because there are so many available and then rent it out. Make sure there is a market for your rental ie.. speak with a company that manages rentals and pay them a fee to help you find a good renter including a back ground check. Then you manage the property every month. Evereyone needs a place a to live and in a few years you will build equity in this home, if the home also appreciates in value then you have made even more money.
The housing market has been bad before like back in the 1980's when many homes sat vacant, and many were forclosed upon, and you could not get a home loan under 10%. I'm simply suggesting that you buy low now and sel higher later. I have money sitting in CD's in the back drawing 5% interest and I have to pay taxes on the money I earn. However, if i invest in a second property in July when one the CD's matures I will be making an investment and be able to deduct my expeneses, taxes, and interest. The housing market is presenting great opportunities for the future---if you doubt that just look at how many foreign investors are buying in this country right now.
