Why is Today’s Real Estate Market a Good Investment?

November 7, 2011 at 11:55 am Leave a comment

by Maria Hass

1. Low Prices – Home values have declined 45% to 85% from their heights. Most homes are selling for the price it sold in 2001 or prior. Arizona homes are on “clearance.” Some homes can cost less than a car. In the Queen Creek, Maricopa, West Valley and other areas developed during the real estate hype, newer houses are selling for $100,000 or less.
2. Low Interest Rates – Mortgage interest rates are down to an incredible mid-4% or better. House payments easily could be as low as car payments.
3. Special Loan Programs – 100% loan with zero down are available with the VA program for military members. Also the USDA program offers zero financing if the property is located in an assigned remote area. Restrictions apply; check with your local lender for details.
4. Rental Market is Strong – The rental market has appreciated 10-15% in the last six months. The rise in rental demand was fueled by homeowners who left their homes due to foreclosure or short sale. Many homeowners are not in a position to buy a home due to credit issue. Their best option is to rent a single family home and retain a lifestyle they are comfortable with. Location, nice neighborhood are key to finding a good rental. It is not a good idea to purchase a rental home base on the price alone.
5. Fix and Flip – Investors are cashing out on Fix and Flip projects. To become successful, one has to know the before and after value of the home to be flipped. Having a working knowledge on remodeling homes could save you time and money. Lastly, have adequate reserves to cover repair, maintenance, sale and miscellaneous cost. Certain areas do better with fix and flips and other others are better to hold and rent. Know the area well prior to purchasing a home to flip.

*** There are numerous reasons why investing in today’s market makes sense, as evidenced by investors dominating the homes sales. They know that the market offers opportunities for wealth and growth.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , .

CHANDLER SCHOOL DISTRICT SCORE HIGH IN STATE GRADE Private Financing Option for Short Sale or Foreclosure

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Categories

Feeds


%d bloggers like this: