Is now a great time to be a buyer in real estate? Yes, absolutely. No one knows the future and often people dread making a decision in a down market. However, the fed has recently proven that it is very interested in keeping our economy going strong and has once again shown a willingness to cut rates. It looks possible that will we see continued cuts, thereby creating more options for financial relief for homes and of course more incentives for people to buy.
Many people have forgotten that interest rates during the last real estate boom in the 80s were literally 14-18%. Just about everyone had ARM loans and were getting 2-4% increases annually. Whereas right now, prices have dropped significantly, you can negotiate like a demon, there is a ton of supply for the best selection possibilities, and interest rates are near 40 year lows.
Back when I started in this business my mind struggled to comprehend how people could rent property and not only cover their payment but show a positive cash flow. The obvious assumption was that they put a lot down on the house and had a small loan or they bought home a long time ago and paid it off. But the real heart of their success was about when they purchased and the interest rate they had.
One thing we know about real estate is that is the best long term investment in America. There are more millionaires made through real estate than just about any other investment. Plus, people forgot that real estate puts a roof over your head, has incredible tax advantages, and it also appreciates! But most important is that real estate is an investment in a home, a family, a quality lifestyle, and a community you and your family can be part of. There are so many important, non-financial benefits, that will always keep real estate at the forefront of our culture.
The people that will have the future long term success in real estate will be ones that get involved when they can get the best leverage on their purchase decision and investment dollars. Temecula, Murrieta, Wildomar, Menifee and San Diego real estate offers a great opportunity right now. These are all growing communities, with most of the growth coming from people leaving LA, Orange County, and San Diego to get more value for their money and a better community for their families. The properties are in fierce competition with each other and the value you can get for your dollar is huge in terms of high living standards.
In fact, this period in time may very well be the one you look back on a decade from now and think those were the days when today's millionaires were made. While the future is the mostly unknown, the reality is that we are currently in a very enviable buyer's market that offers a win on every front. Even though people may worry about a further drop in home prices, the future of real estate is and has always been financially solid.
If you are planning to purchase a home in today's Temecula, Murrieta, Wildomar, Menifee or North San Diego County real estate market, please make sure to use a local and experience professional broker that can help you maximizing your real estate success. No one can really predict the market, but the people that know the market at an expert level can certainly educate you and help guide you to the best options across the board.
Stefan West has been a professional real estate broker in the Temecula Valley since 2002. He is an expert in the community and works diligently to maintain a superior working knowledge of Temecula, Murrieta, Menifee, and Wildomar CA Real Estate. For additional articles or more information, please visit http://www.stefanwest.com
Source: www.isnare.com
