In today’s uncertain economic climate, many individuals are looking for something to invest in that will provide them with steady returns and limited volatility. Many people are sick of putting money into stocks and interest rates on bonds and savings accounts are pretty much non-existent. One option that you might want to consider over the next 12 months is real estate. Why would you want to invest in real estate over the next year?
Real Estate on the Rise
One reason that you may want to put money into real estate is because the market is on the rise. Most areas of the country have seen prices start to tick back up. At this time, prices are still low enough that there is definite potential for investors to realize appreciation in the short term and in the long term. In the near future, inflation is going outpace the low interest rates available in the market and the prices of houses will rise. As an investor, you have to buy when prices are low to realize the full appreciation of the investment.
Low Interest Rates
One of the reasons that real estate is attractive is because interest rates are so low. Mortgage interest rates are at or near record lows right now, and this makes it possible for you to acquire money very cheaply. This makes it possible to leverage the available capital that you do have into more assets than you would normally be able to buy. For example, if you have $100,000 to invest, that means you could buy $100,000 worth of stock, bonds, or some other investment. In the real estate market, you might be able to buy $500,000 or $1,000,000 worth of property with the help of a mortgage.
Another attractive thing to look at in real estate is seller financing. Many sellers would be willing to look at a seller financing arrangement in which you just make payments to them to acquire the property. This helps you avoid accumulating any extra debt on your credit report. Be sure to visit our page dedicated to Seller Financed property.
Overall, the real estate market is a great place to go as an investor in today’s economy. If you are unsure of how to navigate the market alone, don’t hesitate to use a professional at Hamilton-Franklin Realty to help with any issues you may have by contacting us.