Buying Real Estate: The Timing Has Never Been Better

Buying Real Estate: The Timing Has Never Been Better

For many, the signs of a slipping economy is frightening and makes them take stock of their jobs and bank accounts and sets worries in motion. However, for those who are open to opportunity, now is the perfect time to start looking at real estate investment. If you've been thinking about buying a home, you'll find that prices have never been lower and banks are eager to finance real estate purchases, making this the best time ever to look at buying land or a home. That doesn't mean you should rush into a purchase, though. It pays to be cautious and take the time to do research first. Why Buy Real Estate Now The best reason to look at investing in land these days is that it is so much more affordable than before. People are getting desperate to unload their houses and are willing to sell at a loss in many cases. In other instances, homes have been foreclosed and are selling at such a low price, it would be a shame to pass the deal up. Investments like this are good because land will always end up being worth more if you wait long enough after you purchase it. At the moment, the buyer's market trend is predicted to last at least a year, but soon land prices will rise once more, and those who have invested in some great pieces at low prices will find themselves sitting on a goldmine. This is how many real estate moguls get started. It's not an immediate turnaround, but you will find that for those willing to wait for a few years, this is an excellent way to multiply your money. What Kind of Real Estate Should You Consider? Land is always a good investment because it can be built on at any time or can be left to sit without changing. If you aren't interested in doing maintenance, you can purchase a piece of land and leave it until you are ready to resell or build on it. In some cases, you may even be able to rent it out to someone willing to fence it and put animals or plant a garden there. Homes can be an excellent way to go, particularly if you plan to live in the house or rent it out. However, there is a lot more upkeep involved with a house than a parcel of land. If you do choose to go this route, you will want to have a full inspection done to make sure you aren't getting any surprises later on. A missed issue now could result in a major hit to the bank account later. Some investors choose to invest in commercial real estate. This covers everything from warehouses to office buildings and storefronts. At the moment, this is an area that is very hot, and it is expected to get even better as time goes on. Commercial property tends to command much higher rental pricing than a regular home and can be a better investment overall. Where to Find Real Estate So where do you find real estate deals? There are real estate agents who will provide an overview of many properties, but if you use one, you will be paying more because the agent is taking a percentage of the sale price. That means the buyer will be less likely to drop their price. In many cases, you can find even better deals by going through the owner. There are numerous places to find land for sale. You can look in your local paper, or if you are interested in buying further afield, check online for real estate listings. Many people put their land or home up for sale on classified sites or on real estate pages and even their own blogs, so you will often find listings this way. Even a quick drive through the area you are interested in living in will often turn up some "for sale" signs. And, you can also check out real estate catalogs for more places to consider. Getting the Best Deal First of all, keep in mind that real estate is about negotiation. Never pay the asking price at first. The seller expects that you will provide a counter offer, so make full use of this and see how low a seller is willing to go. Often it is possible to negotiate a lower price if you are willing to pay part of the purchase price in cash, as well. In the case of foreclosure, many homeowners will do their best to destroy a home. They will rip up carpeting, pull out light fixtures, graffiti the walls, etc. in an attempt to devalue the house for the bank so they can "get back" at them. These homes are labeled uninhabitable, and they will be sold at rock bottom prices. Since the vast majority of the repairs are cosmetic, they can be an excellent investment for those who are interested in putting in a little time and money to repair the damage. Often these homes are in good neighborhoods and can be resold as soon as the damage has been fixed at a much higher price. As with any large deal, you will want to make sure that everything is legal when you purchase an investment property, so don't hesitate to have a lawyer look at all the paperwork, preferably one that is experienced in real estate. Have a home inspection done beforehand so you will know exactly how much work will be involved in maintaining or repairing the home. It's a buyer's market in the real estate industry, and this is the ideal time to take advantage of that by investing. You'll be able to buy low now and resell for considerably higher once the housing market goes back up. Land is always a good investment if you're willing to sit on it long enough, houses can be rented while you wait, and commercial real estate is always an excellent source of recurring income. Any way you look at it, now is a great time to pick up some huge deals in land, houses, and commercial real estate.