When Is The Right Time To Invest In Real Estate?

By
Industry Observer with Spot Color Marketing

When it comes to matters as important as our finances, and especially when it comes to investments, we tend to want to wait for the perfect time.

Individuals with an interest in investing, most especially in the real estate industry, have a lot to think about in terms of the perfect time to invest or which market is best to help them get the most in a very short time so far as their finances are concerned. Everyone would like to wait for the right time, every investor would look for a market with the best rates and deals, a market with greater chances of success to build their portfolio.

Most of all, we are all aware of the fact that the real estate industry is considered as one of the greatest investment option. Real estate has historically outperformed and made its name against other industries. This is one of the few industries to provide a cash flow for investors that can be passive or active as they want. Almost every expense is tax deductible, and it is possible to cut off gains from taxes when it’s sold.

Unlike before when real estate investors, especially first-time investors, faced the problem of knowing when it’s best to make the big move in the real estate industry, present technology has made it easy and possible with the use of online resources from professional and government agencies for an investor to determine the best time to make an investment in any particular housing market. The indicators that should be used by investors to determine a favorable investment time are the same used by the National Association of Realtors which includes federal, state, local private and public agencies.

The decision of when it’s best to invest should involve the following considerations:

  • National Trends: The National Association of Realtors created a statistical tool known as the “Bubble Index” that functions by taking into account several factors including foreclosure, appreciation, and flipping rates across a specific market. The tool as well considers the mortgage rates (the number of issued mortgages versus cash transactions), and the price to income and the price to rent ratios. The tool has the ability to determine demand by considering the growth with respect to the number of housing starts, and job formation. 
  • Local Trends: This has to deal with home prices in different markets. Over the past year, home values in the area of Corvallis, OR are known to have gone up 4.4%, which puts the area in the list of healthiest housing markets in the United States. An increase in home values is a sign of steady demand which signifies a steady job growth. If you are looking for an investment realty Corvallis, I recommend contacting Duerksen and Associates Inc. 
  • Having it All in Place: When you must be ready for the housing market, the most important thing to do is research, proper research will help you find whatever trend you need to so far it concerns your investment. Proper research will help you determine the perfect time to invest in real estate. some report that might be helpful to get from your research include:

✓     Population and employment rate

✓     Interest rates

✓     Home values

✓     Average sales time on the market and other sales trends

There are several online websites where you can get reliable information concerning your investment. You’re never too young or too old to take a bold step towards the real estate industry.

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Leif Price

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