Think before you buy into the housing market. Investment in property is more attractive than ever due to low mortgage loan interest rates and decreased home value – but you have to be careful. And as usual, providing personal finance advice, real estate advice and consumer advice on the Ilyce Glink Show July 22, 2012 on WSB Radio.
Let’s talk about a letter I received this week. I can hardly stop thinking about it because this communication is so indicative of everything that is going on. It goes back to the point I keep making: you have to think before you buy or do anything related to your finances.
I get thousands of letters every year and while I can’t answer them all, I do read each one. This one from Steve indicates that he listens to the show and he heard me say last year that it was the best time to buy an investment property or get into the housing market. Steve took my words to heart and he rushed out and bought a couple of properties in neighborhoods that are deteriorating. Prices have gone down since he closed his deals and now he’s mad at me. He thinks he’s been misled.
Folks, I am telling the truth. I have been saying since 2008 that’s it’s the most remarkable time to buy property. There are a confluence of reasons:
- Mortgage loan interest rates remain at historic lows. Banks are nearly at the point of paying you to take their money.
- Home values have also dropped, making your cash or borrowed dollar go farther than before the housing bubble burst.
- Waves of foreclosures, which have yet to cease, have created excess inventory.
This is only the beginning of the turnaround for the housing market and those who can get involved still should, but think before you buy. Plan, then plunk down your money. I am not in your neighborhood. There are better and worse deals, positive and negative negotiations everywhere. Do your homework. The stakes are too critical.
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