Real Estate Investing: Is Now the Right Time?

Is Now The Right Time To Invest In Real Estate? The short answer is both YES and NO because now may be the right time for you, but it may not be the right for your neighbor. Let’s start with a few questions and add some details below:

1. Do you have an investment strategy?

For most people investing in Real Estate is a long-term investment, at least 7-10 years.

2. Do you have 20-25% down payment?

A typical investment loan will require a 20% down payment with a slightly higher interest rate than a primary residence.

3. Are you looking for a monthly cashflow?

Rental income can provide this assuming income is greater than expenses. If you’re not sure how to calculate cashflow there are plenty of online resources or contact me.

4. Are You An Experienced Real Estate Investor or will this be your first investment?

If this is your first investment, guidance from a realtor who has experience investing in his/her own properties will be critical.

5. Where is your investment property going to be located?

If this is your first investment having it close to home generally works best.

6. Are Homes Over-Price Today?

If you’ve read my article in the September issue of the Avalon Sun, statistical current prices are in line with a conservative 3.5% annual appreciation over the past 17 years. In our area of East Orlando, it’s forecast that prices will continue to rise over the several years but at a slower rate than this year.

As prices rise, homes become more expensive pushing some potential buyers out of the market making renting more attractive. Current low-interest rates drive down the mortgage payment on an investment loan. Purchasing a real estate can be a hedge against inflation as you will have locked in your loan at a low interest rate. As interest rates rise, yours remain low for the life of the loan.

7. Here’s the paradox: It’s a more difficult time to buy, but much more affordable time to own.

Homes are selling quickly making it nearly impossible to buy anything under market value. As an investor, if the numbers work, the cash flow is positive, and if the property and location meet your investing strategy, there’s no reason not to move forward. In fact, interest rates can only go up.

Visit My Blog at www. avalonrealtygroup.com/Blog for a more in-depth discussion.

You’re also welcome to call me at 407-312-4928 to discuss investing in Real Estate.