Are You Prepared To Profit From A Boom In Real Estate??
“We simply attempt to be fearful when others are greedy and to be greedy when others are fearful.” Warren Buffett, Forbes richest person in the world February 11th 2008
Logically we all know that investing in real estate makes sense. We all feel happy with the equity in our home. Why not invest in an income generating property?
Emotionally the majority of people are fearful of taking the first step.”The time isn’t right.” “There’s a recession on.” “House prices are falling.” There are always a hundred and one excuses for not doing something.
Historically real estate has always increased in value. It is not a steady increase, there are ups and downs but over the medium to long term it is “safe as houses.” With a renter paying the mortgage then the ups and downs do not matter. The house is paying for itself and the landlord can sell or better still refinance when the time is right.
The current “Buyer’s Market” may make this the ideal time:
1) Interest rates have dropped to historic lows.
2) Sellers are more flexible and willing to negotiate on a sales price.
3) The inventory of available properties is plentiful. There are multiple properties to look at and here is no need to be rushed into making a hasty decision.
I have had the pleasure of proving the above points with clients in Barrie recently ( quoted in the February 2009 edition of “Canadian Real Estate” magazine as a “Cash-Flow King”.)3 weeks after closing tenants had moved in paying $1,275 per month on a house bought for $200,000. we There are a number of properties available from $180,000 with monthly rental of $1,100 upwards. The rates are even better in the student area where houses are rented by the room. If anyone would like more information and accurate figures on ROI please do contact me.