Do you have any friends with money? Maybe they need to think about investing in Real Estate now!!
I read an article in Nov/Dec edition of Realtor Magazine by Chief Economist Lawrence Yun. He pointed out the housing affordability is about the best it has ever been. This is great for cash buyers but not so much for others with the mortgage lending tightening.
Lawrence said that rents rose 3% in the 3rd quarter of 2011 and the data indicates that this trend will probably continue. IF this trend continues at an anually rate of around 3.5%, rents will double in the next 20 years. IF they reach a 5% trend, it will only take 14 years to double.
Now that the bubble has passed, home price could also double in the next 14 to 20 years but it is still unclear when prices will begin to catch up with rents.
According to the expert, for the long-term, investors buying today are sure to catch some, if not most of the upward ride!
Some good places for investors to look are with home auctions where you can find some good deals and on homepath.com where investors can buy with just 10% down for no PMI. If you have an investor in the Carolinas, ask them to call me to get pre-approved for a quick and easy closing. Not all lending is difficult and not all lenders are the same. We start off by underwriting the file in a few days before we move it to processing.
My Christmas card that I am sending out to family includes a 2012 calendar which mentions that I work with clients seeking investment homes! Yes, it is a great time to purchase!
Buy low and sell high, right? Gold has peaked; real estate is down. And rental income means cash flow! Now is a great time to buy!