That headline over an eBusiness Week article sure wouldn’t win any awards in a “How to win friends and influence people” class, but it’s probably true (read the whole article here - http://tiny.cc/XQKBb) . Now is the best time in decades to buy real estate, especially residential properties. Commercial real estate is entering the same value loss phase that residential has been through for the last few years, but investing there is not for the faint of heart.
The eBusiness Week article referenced all of the usual reasons to buy now – lowest prices in over a decade, continued low mortgage rates, the tax credit for some buyers. At least part of the article seemed to be pointed at buying real estate as an investment, perhaps buying up rental properties or homes that could be fixed up and flipped. While that’s certainly an option, it’s one that amateur investors shouldn’t try right now. Even many experienced investors have been burned by the speed and depth of value loss on some of their properties.
Like lots of other free investment advice, this article is worth every penny that you’ll pay to read it. One certainly doesn’t need to be called stupid for being leery of real estate investing, even now. If the house that you invest in is for yourself and if you intend to stay there for a long while and if you really can afford it; then, it is s good time to buy, likely never better in our lifetimes.
But, if you are broke, or at least lack enough savings to make a decent down payment or to weather through a few months of layoff or job loss; then it’s still a bad time to jump into a house, even if it is a “great deal.” People getting in over their heads is a key factor that got us into this mess in the first place. We need to learn from those past mistakes.
There is a herd mentality that can take over – an “everybody’s doing it so I must, too” thought process that can drive stupid behavior. The greed and fraud of the hucksters feed on that thought process and nurture it into action. So, just pause and think. Apply a little common sense to the situation. Sure it might look like a great deal and, boy, wouldn’t it be great to have a big house like that; but, is it the best thing for you to do right now? If the answer is still Yes; then, give me a call and I’ll help you find that great deal on a new house. They’re out there. If the answer is No; hold on to my contact information and give me a call when you are ready. I’ll still find you a great new home.
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