2015 – The Year to Invest
Investing in Real Estate has always been a proven way to build wealth in our country. In the past several years we experienced a sharp run up in value appreciation, and had to deal with a hard crash on the other side. The media focused for the past several years on the terrible state of the housing market, on plummeting values and families losing their homes and hard earned money they had invested. This created an environment in which many would-be homeowners and investors felt nervous and discouraged about investing in real estate. The good news is, that now, it’s a great time to invest in real estate again. The market is optimal, foreclosures are down to a low, normal range, the economy is recovering, construction is increasing, home prices are rising but still relatively low and interest rates are the lowest they have been in history. The next several years will provide a great opportunity to build wealth by investing in real estate.
“In my opinion, the next five years will be the best ever for those who choose to make their fortunes in real estate. Don’t miss the lucrative ‘bottom bounce.” The best time to purchase stock is when it has bottomed out and is rebounding upwards. I like to call this the bottom bounce. We can expect three-to-five years of strong appreciation after the market lows witnessed in late 2012 and early 2013,” said Brenton Hayden, a contributor to Entrepreneur.com. “With housing prices rising steadily this year, it’s an ideal time to invest in a rental property, both from a personal finance perspective and from a smart business investment. Keep in mind, the earlier you act, the more money you will accrue.”
Many would-be investors think the time has come and gone to invest in real estate claiming, we have already hit the bottom. There is plenty of great opportunity as the market pendulum swings back up the curve of appreciation. This, coupled with interest rates as low as 3-4 percent, which provide an investor with low monthly payments, creates positive monthly cash flow. There are still many families that have been hurt by the crash and cannot qualify to buy a home thus, creating increased demand for rental homes. In his column Hayden recommends buying and holding as a strategy. He refers to Blackstone Capital, a large investment group that purchased 48,000 homes across the country over the last two years to hold long term, as rentals.
Real estate is a proven way to accumulate wealth. There were great opportunities and the bottom of the crash, and there are many more great opportunities as we rebound. Buying and holding is a strategy with a strong foundation. During the appreciation run up, homes were being bought and sold quickly for profit. This strategy is short term and only works when the market is rising quickly and timing is critical. As many investors learned when they purchased just before values started dropping. A strategy of holding onto a real estate investment long term is sound; because it can out last any ebb and flows in the market over time.
Consult your real estate professional for advice on your next investment. A couple of great books to read on the subject are Rich Dad, Poor Dad, by Robert Kiyosaki, and The Millionaire Real Estate Investor, by Gary Keller.
Written by Carlie Back