Market analysts say the recession has officially ended. However, they also believe that effects of that economic battering will still be felt by the country for months or even years to come. That has left some people asking: is it advisable to start investing in real estate right after the recession? You will be surprised with the answer.
Actually, investing in real estate today is a splendid idea. You may not believe it, but for many reasons, this is the kind of investment that will bring you profits. Here are a few of the reasons why you should inject your money into real estate today.
You can buy more real estate properties for less today. Since the economy has just come out of a slump, property prices have yet to fully recover. They are relatively lower at the moment. That means that your savings might buy you a house today. Seriously. Today presents an opportunity for you to purchase properties for pennies on the dollar. That’s value for your money. If you’re a first-time home buyer, now is the right time to realize that American Dream of homeownership. If you are an investor, this is your chance to buy a property you can hold on to for now and sell for a profit in the future.
Another reason is that you have the choices of real estate. Various kinds of affordable properties are now selling across the country. The recession has led to an increase in the number of properties repossessed by banks. These are known as REOs or real estate-owned properties. REOs are decent enough to become your first home. A lot of mortgage payers are also considering letting go of their property because of the tougher times. Fixer-upper homes, also known as handyman specials, are very economical. These are properties that need repair and are a prime commodity for rehabbers and wholesalers.
Reason No. 4 is there are methods of investing in real estate that thrive today. Short-term methods of investing like wholesaling and rehabbing are a hit business today. Because there are thousands of available cheap properties, wholesalers and rehabbers are taking advantage of the opportunity. Wholesaling is quickly buying and selling a property for a profit while rehabbing is repairing the property before it is sold.