Posts Tagged ‘why invest now’

Three Reasons to Invest in Real Estate

Tuesday, January 19th, 2010

Lately I’ve been asked if now is a good time to invest, and my answer is always the same – YES! Now you might be saying to yourself that this sounds like optimistic broker speak, but it’s not. The reality is that we’re in the midst of a perfect storm and there are 3 great reasons that both you should be investing in income property right now. Click here to learn more about investing in real estate.

  1. Cheap Debt – interest rates are still at historic lows and you can get a 30 year fixed, non-owner occupied investment loan on a 3-4 unit property in the 6.0% range. That is fantastically cheap money.
  2. Low Prices – prices in most areas have fallen back to 2001 and below levels making this a great time to buy. You know the old adage, ‘buy low…sell high’.
  3. Inflation – with our federal deficit growing and over $1.2 trillion of new money recently printed, most experts agree we’re about to go into a period of significant inflation. And while this isn’t great as a consumer, as a property owner you like it for two reasons: first, you’re repaying your debt with deflated dollars and second, your rental income will increase meaning your passive income will increase as well.

For many new investors the largest impediment to success is fear and an inability to get financing. The first obstacle can be overcome through education and by working with a knowledgeable real estate professional. That is where the information on this site comes in. The second can be addressed by speaking with your mortgage broker and making sure you qualify for today’s cheap debt.

So act now. Today’s low prices and great financing, coupled with tomorrow’s inflation, will be the foundation of your future wealth.

Investing In A Down Market

Tuesday, August 18th, 2009

By Jon Swire

In this edition of my video blog I discuss the current state of the market and the 3 reasons why now is a great time to invest in real estate. Not only is debt historically cheap but prices have fallen down to 2001 and below levels in many areas. And you remember the old adage, ‘buy low and sell high’. Finally, we’re predicted to go into a period of high inflation making it a great time to be a real estate owner. You’ll repay that cheap debt with deflated dollars while your rental income rises due to inflation.

So stop thinking about investing and get in the game. Take the first step towards creating the foundation of your future wealth.

Why Invest Now? Tomorrow’s Fortunes Are Made Today.

Friday, January 23rd, 2009

By Jon Swire

The old adage ‘Buy Low and Sell High’ has never been truer. Real estate prices around the country have fallen to 2002 levels and below, and with interest rates at historic lows, there’s never been a better time to invest in real estate. Tomorrow’s fortunes will be made today. For many long time investors, they see the opportunities of the 1990’s all over again, and this time they aren’t going to make the mistake of sitting on the sidelines while others grow rich.

As with any investment, your goal is always to buy at the best possible price you can. That makes today’s market a great one for investors. After all, prices in many areas are down as much as 35-50% from their highs in 2006, and they’re projected to stabilize sometime in the next 6-12 months. That means you should begin your search now for your next investment.

In addition to the huge drop in prices is historically cheap debt. The Fed Funding rate is essentially 0%, and interest rates haven’t been this low in over 50 years. What this means is that you’ll be locking in incredibly cheap debt for up to 30 years on any investments you make. And every year the purchasing power of the dollar erodes due to inflation, you’ll be making an even small ‘real dollar’ value mortgage payment. In fact, a recent study showed that if you purchased a home in 1972 using a 30-year fixed, your actual cost of borrowing after accounting for inflation was -1%. And this didn’t even take into account the tax benefits of owning real estate.

I know it seems difficult to consider making an investment in trying times like these. After all, everyday you turn the TV on you hear more bad economic news. Just remember, real fortunes are made when no one else is buying. Now is the time to start building the foundation of your future wealth and real estate portfolio. If you could turn the hands of time back, would you have acted differently during the 1990’s? I can’t tell you how many of my clients made a fortune by buying properties during the 1990’s, and watching rents and property values skyrocket.

Talk to your local real estate agent and find out what’s available. Meet with your mortgage broker and get prequalified. Be prepared to act when the right deal comes along. As I’m fond of saying, ‘Luck favors the prepared!’