Five reasons why now is one of the best times we’ve ever seen to invest in real estate. Let’s dive in. Today we’re going to talk about five reasons why now is the best time to invest in real estate investing. There’s a lot of fear mongering going on out there right now about what’s going to happen in the stock market crash. I wouldn’t say fear mongering because it’s actually true so fear is something that’s not true, but we’re seeing the concerns coming in the stock market, but real estate still has a lot of very positive signs. Especially in the investing sector and that’s what we’re talking about. We’re not talking about the retail sector where you know families are buying properties to live in. We’re talking about for investing and I want to be very clear about that.
So why is this one of the best times ever to invest in real estate? Let’s start with this because prices continue to rise and by any measure you’re seeing markets across the country seeing a nice little uptick in prices. There isn’t a big decline anywhere even in some of the areas that were hardest hit during the last recession so we’re seeing a nice little appreciation, but we’re not going crazy and it’s not over inflated.
Number two on the list. Yes there are bubbles, but the bubbles are not a major concern for investors. We are not investing in San Francisco where there probably is a bubble we are not investing in Miami where there probably is a bubble whom we are not investing in New York City where there probably is a bubble. We are staying away from bubble areas and in other areas we’re seeing strong stable markets in the housing sector where we like to invest in Midwest markets and other markets like that. So don’t believe all the hype about the bubble.
Another clear sign that we’re still sitting in a good housing market right now is that builders are building. If we were in troubled times we would see a lot of supplies a lot of lumber a lot of other steel and materials sitting in big piles and not being used, but that’s not the case. Builders are building houses, but why this is great for investors is that they’re not building houses for renters to live in. They’re building houses for you and your family to go live in, four and five bedroom houses. That’s where builders are putting their attention. What does that mean for us as real estate investors who are buying rental properties? That means we can go in and buy the three bedroom one bath houses that builders are no longer building. Why? Because millennials aren’t buying homes anymore. They’re waiting. They’re not buying that starter home so they’re waiting until the four bedroom five bedroom house is ready for their family. They have a kid already and they move into a larger home and are sort of skipping those early homes. That’s great. That means those three bedroom one bath houses out there that still exist. Those two bedroom one bath houses I’ll buy them all day long. That means they’re still building they’re not building in the rental sector and that’s good news for us.
Another really important factor is that foreclosures are way way down. That means simply that people aren’t getting in over their head when they’re buying. So yes more and more people are picking up these properties, but foreclosures have plummeted. That means that the loans they are able to get are not going to get them into trouble and I can’t buy foreclosures anymore I used to buy them and rehab them but they’re very difficult to come across these days. So that is another good sign that we’ve corrected in a way that we hadn’t before.
The fifth and final reason why we still sit in a really nice real estate market right now is that areas like Miami and Orlando and other areas that were hit really bad during the crash because they were way up inflated you know that really high and overly inflated prices. You could buy a house in Orlando for $200,000 and then weeks later sell it for $260,000. It was ridiculous. The reason that indicator is still strong is that we’re seeing that those markets have not returned to that pre-crash craziness. That they’ve really stayed below that artificial bubble that they were in. So a $200000 house is worth $200,000. It didn’t go up to $240k again. This really shows that we have a stronger footing in the housing market that we have in a long time. As an investor it’s the best time to get out there and start buying rental properties and if the economy declines that means there will be more availability out there for you to pick up rental properties. More availability out there to pick up your first properties so now is the best time to invest in real estate. All the indicators are pointing in that direction.
I’d love to hear your thoughts or comments. Leave me a comment about what you think and if you learned something.