My neighbor told me it's a great time to buy a house as an investment. Then my cousin said the same thing. I don't believe them because there are all kinds of "For Sale" signs everywhere. Is it a good time to invest in real estate? Why?
- Irwin Investor
Now is absolutely a GREAT time to buy! Here are just a few of the reasons why we think now is a great time to buy:
· Recently Warren Buffett, one of the wealthiest men ever, appeared on CNBC's Squawkbox. When he was asked about the current Real Estate market, he answered: “If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”
· Later in the interview he was asked if buying a home is better than investing in the stock market right now. He replied: “If I knew where I was going to want to live the next five or 10 years I would buy a home and I’d finance it with a 30-year mortgage… It’s a terrific deal.”
· Mr. Buffett was asked “Why invest in Real Estate Now?” His response: “It’s a way, in effect, to short the dollar because you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.”
· Locally, the inventory in Union County is at a nearly all time high, while prices continue to decline and interest rates are at near record lows. So the choices that buyers have are very attractive when all of that is taken into consideration.
Additionally, this article argues the point based on two business school professors that were doing research on why now isn’t the time to buy, their results were not what they expected them to be.
Ultimately as a buyer, you will determine for yourself when the right time to buy is. Just make sure you have a REALTOR® that you’re comfortable working with (like us). :)