As the housing market cools in many parts of the country and as nearly a trillion dollars in ARM’s reset themselves this year, now may indeed be a great time to invest in real estate. While wise investing is not as easy as many people think, there are bargains for those who know their market and “shop ’till they drop.”
Investing is not buying the first thing that comes along. Investing in real estate is a business and you must treat it like any other business. To make money, you buy low and sell high. To do that, you have to know where the market has been, where it is now, and where it’s going. Of course that’s easily said and not so easily done. But it is possible. The key to success is knowledge and as they say, knowledge is power.
Kiplingers did a story on this subject that is worth reading. It talks about they whys and hows of investing in today’s market. To read the story click here.
I believe this article in right on target. Another solid reason for investing longer term is hidden in the rationale for the increased foreclosures: “subprime” mortgages coupled with ARM’s. We have all seen how the subprime mortgages are quickly becoming a thing of the past. With many people still needing such loans, they will now need houses to rent. Additionally, with home prices still high, fewer and fewer people can afford to buy. The investors cited in “Kiplinger” have got the right idea.