REMEMBER THAT MONEY IS MADE DURING TIMES OF TURMOIL!
With instability clouding the nation’s economic outlook, the timing is ideal for an investment in cash flow real estate. Let’s examine the fundamentals that are creating perhaps the best real estate buying opportunity in a generation. While core downtown luxury markets have largely held their value, price softening has occurred in the peripheries of the urban as well as the suburban markets. Rarely do investors get the opportunity to take advantage of lower prices and lower interest rates at the same time. Rents have historically been far less elastic than have sale prices during periods of market correction. Therefore, locking in an interest rate for a piece of rental property at this time, positions one to reap great benefits going forward. For nothing more than a wisely placed down payment, you can plant the property investment seed now and benefit in the following ways:
1) Whereas you will begin amortizing principle immediately, you will start the clock ticking toward a time when you will own the property outright and begin to derive pure income.
With instability clouding the nation’s economic outlook, the timing is ideal for an investment in cash flow real estate. Let’s examine the fundamentals that are creating perhaps the best real estate buying opportunity in a generation. While core downtown luxury markets have largely held their value, price softening has occurred in the peripheries of the urban as well as the suburban markets. Rarely do investors get the opportunity to take advantage of lower prices and lower interest rates at the same time. Rents have historically been far less elastic than have sale prices during periods of market correction. Therefore, locking in an interest rate for a piece of rental property at this time, positions one to reap great benefits going forward. For nothing more than a wisely placed down payment, you can plant the property investment seed now and benefit in the following ways:
1) Whereas you will begin amortizing principle immediately, you will start the clock ticking toward a time when you will own the property outright and begin to derive pure income.
2) Tax benefits, including depreciation, will enhance the net benefit to you during your period of property ownership.
3) Put inflation to work for you! Inflation will gradually (or possibly not so gradually) raise the rent roll from your investment as well as ultimately the property value itself, while fixed rate financing will hold your mortgage payment constant.
4) Create leverage with minimal risk. Employing leverage in equity markets is called buying on margin, a risky practice at best. In real property markets, leverage is achieved through mortgage financing, a far safer way to build equity.
CALL OUR TEAM FOR ADVICE ON ANY AND ALL ASPECTS OF REAL ESTATE AND TO DISCUSS THE BEST WAY TO POSITION YOURSELF NOW.
LOOK FOR OUR NEXT BLOG: HOW TO LEGALLY BUY INVESTMENT REAL ESTATE WITH YOUR IRA!
LOOK FOR OUR NEXT BLOG: HOW TO LEGALLY BUY INVESTMENT REAL ESTATE WITH YOUR IRA!
