It has been two long years since last writing the blog article Is It Time To Buy That Investment Property Or Second Home? Those of us who have been in the real estate industry (or even those of us who have watched the evening news with any regularity) know that the real estate market has changed markedly during this time. Notwithstanding, one fact remains constant: now is still a great time to buy real estate as an investment. Just as was the case in 2012, I don’t have a crystal ball, but there are some factors that suggest that it may be time to invest.
- Low Rates (for Now): Those of us that remember the shoulder pads and bag phones of the 80’s also remember double digit mortgage interest rates. In addition to our improved collective style, we also enjoy very low interest rates. I won’t speculate (use my non-existence crystal ball) as to when the Fed will raise rates; however, many believe it’s not a question of “if,” but a question of “when.”
- The Season: The race to move before school starts, while the weather is nice, and while volume is high is coming to a close. As it usually does in the Fall after the Spring-Summer rush fades to changing leaves and the thought of snow, the Seller’s market will likely give way to a Buyer’s market.
- Stability: the fire sales of 2012 are gone (mostly). The bargain foreclosure has given way to the more predictable. While the impressive potential for quick gains may be largely over, stability should give more casual investors a greater degree of comfort.
I gave you a “few things to think about” back in 2012 (seriously, if haven’t yet clicked the link back to that article, you really should). Here are a few more considerations that the real estate moguls of tomorrow should consider:
- What are my long and short term goals? am I looking for income generation? What is the amount of time that I can realistically dedicate to managing my investment? Do I have the skills to “flip” a house? How long do I want to own this property? Do I want to use the property, rent it, develop it, etc? Do I have the professional connections to realize my investment’s potential? Considering your goals and abilities will help shape your investment strategy.
- What is the strength of my current real estate professional network? successful real estate investors are surrounded by great brokers, real estate attorneys, and mortgage professionals (to name a few). This is no coincidence. Spend the time to establish a relationship with your most important “partners” to make sure you are represented by knowledgeable, efficient, and experienced professionals.
Successful real estate investors usually aren’t looking to “get rich quick”; rather, they understand that it’s a “slow roast.” They are careful and measured, relying on planning and the advice of industry professionals. Now is a great time to invest: take the time to consider your objectives, assemble your team, and get out there to find your next investment.
Stiles Law, with offices located in Boston and Marshfield, Massachusetts, is a firm concentrating in real estate conveyancing and mortgage lending services, representing buyers, sellers, borrowers, banks, mortgage companies, investors, builders and developers in all of their real estate and mortgage transactions. Stiles Law serves all areas of eastern Massachusetts–the North Shore, Boston, and Cape Cod, in addition to the entire South Shore, including: Plymouth, Kingston, Duxbury, Hanover, Pembroke, Marshfield, Scituate, Norwell, Cohasset, Hull, Hingham, Weymouth, Braintree, and Quincy.
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