Is Now the Time to Invest In Real Estate?

What You Need to Know Before You Invest In Real Estate

Many consumers are wondering whether or not now is the right time to invest in real estate. After all, it's definitely a buyer's market and in some areas real estate prices are at an all-time low. But is now really the right time to invest? Before you jump into the real estate market, there are some things you need to consider.

Flipping Isn't Easy

Forget the idea of buying a property and selling it right away for a profit. Most homes aren't selling fast. In fact, there are some by me that have been on the market for over a year. If you want to build a real estate portfolio right now, it's true that prices are cheap. But you'd better plan on holding on to those properties for a while because you aren't going to be able to sell them quickly as in days gone by.

Prices Might Drop Further

Another thing you need to think about before you invest in real estate is that the market might drop even further. Some analysts are predicting that this is just the tip of the iceberg - that we're at the beginning of a recession and things will get worse. If that's the case, the property you pay $200,000 for today might only be worth $150,000 two or three years from now.

The Upside

The upside of all of this is that investing in rental properties has become much easier. IN some areas property values have gone down while rent prices have remained the same. That leaves more margin for profit.

The Bottom Line

Here's the bottom line - before you invest in real estate ask yourself why you want to do it and what you want to get from it. If you're investing and don't plan on selling right away, not might be the perfect time to do it. If, however, you don't want to carry an inventory of properties and you're living in an area hit by the economy, now probably isn't the best time to invest.

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