Yesterday while posting the market numbers for Southern Indiana Real Estate, I said that I am really excited about opportunities I see for both buyers and sellers. Today I'd like to expand on that a little bit, but from mainly a buyer's point of view.
I think it is safe to say that most people know we are in a challenging real estate market right now. There has been an above average number of foreclosures and home prices have dropped on the national average over the last year or two. Neither of these things are good and they aren't what we like to see.
With that said though, no one ever talks about a few things that I'd like to point out here today. The first being that our market here in the Midwest and more specifically, Southern Indiana, is a much more stable market than some of those around the country. While we didn't see the dramatic price increases during the "Real Estate Boom", we also didn't see the dramatic decreases when the "bubble burst" either. Our market has proved over time that real estate was, is and in my opinion always will be a great investment opportunity.
The second thing I want to talk about is the foreclosures and other investment properties. So often when I hear of people wanting to get into the investment side of real estate, it is on the "flip" side. That means they want to buy low, fix it up and then sell high for a profit. This is a good way to try and make money quickly. The only problem with that is again the fact that we live in a much more stable market. Their is much less room for error than there is on any the real estate shows you see on TV. The margins that they have in some of those areas compared to those we have here don't really compare.
What I try to talk to people about is a different side of investing. If there was ever a time to buy property to hold onto, now is it! If history has proved anything, it is over time our market will continue to climb. Combine that with the fact that there are some unbelievable buying opportunities out there (ie. foreclosures, relo homes, etc.) and I can't think of any good reasons why you wouldn't want to do it. Some will say they don't want to mess with tenants or something to that effect. I say phooey! If you know that is part of it and you have to deal with it up front, you will be able to handle it and will probably be surprised by how easy it can be. Plus, if done correctly, and you are cash flowing money every month, those tenants won't seem to get to you near as much as you thought they might.
Folks, think of it like this. If you don't do it, somebody else will. And they will be the ones reaping all the rewards from them taking their chance when opportunity came calling. Wayne Gretzky probably said it better than anyone else when he said "You miss 100% of the shots you don't take.
If anyone would like more information or has questions they would like answered, please don't be afraid to call or email me. I would love to hear from all of you.
I almost forgot, these are some lists of homes in the Southern Indiana area that currently have tenants in them. What a great way to get started, buy a house that is already making money!