3 Signs It Is Time To Invest In Real Estate

Financial freedom and independence is not something that is created overnight. Although some may give the impression they were “Overnight Millionaires,” the truth is never that easy. Most want to have financial freedom and not be stuck with the worry of making the rent at month end. The real truth is financial freedom takes time for most. It also takes the use of strategic moves with your money. Yes, I am referring to investing. One of the biggest commodities out there is real estate. So, when should you buy?

1) Prices are low (For those who want a large profit)

The old adage to make money through investing is to buy low and sell high. The same is true for real estate. Especially if you are early on into it. When the economy tanked back in ’08 the prices of homes dropped rapidly. It was a hard time for those who were trying to pay for the mortgage and many lost their homes. However, there was another group of people out there who were able to come in and buy dirt cheap homes and rent them out. Some even flipped them for profit. In today’s markets, we are seeing prices in real estate rise once more. My home alone has already appreciated 21.5% in the last 4 years alone! If someone were to ask me today if I would buy investment properties, I would say “No”.

2) Interest rates are low in comparison to the home prices (For those looking to add to your portfolio to sell)

Unless you are a cash investor, you are probably going to want to have some form of a mortgage on whatever property you are going to buy. It would only make sense to try and time the markets well as to get a low interest rate in conjunction with the price of the property. With the way the economy moves, you are probably not going to get a dirt cheap prices, but it should be reasonably price so that you COULD turn a profit. In some instances, this can be a very short window to buy in. Plus, you will be fighting others who are trying to do the same thing.

3) There are a bunch of homes on the market that are not moving (For those looking for another rental)

As many of us have learned with supply and demand, the price of things fluctuates. When there is a huge supply, your demand will go down and prices will be lower. The opposite is true as well. Thus, if you are seeing a ton of homes on the market that just aren’t moving, it may be worth checking into. When homes are not moving, sellers will have to drop the prices in order to make the sale. This is where you can potentially offer a reasonable price (but considerably lower) to get the house. You can then turn around and rent it out at a fair price to cover the mortgage and potentially a little extra.

Investing can be fun and very rewarding. However, you have to know what you are doing a little bit to ensure you do not get in over your head. Be smart about this stuff and continue learning.