The “Great Recession” of 2007 to 2009 had taken a great toll on housing markets in most cities and metropolitan areas in all parts of America. Though overall economic recovery of these markets is far from assured, several areas will most likely resume growth and recover completely in the near future. The impacts of the recession lead people to believe that investing in real-estate wasn’t the best of choices. But, despite the negative publicity, here are a few reasons why buying land and property in America is still worth capitalizing on.
The prices that some of these bank owned properties are selling for is such an incredible opportunity for cash investors (bank owned properties cannot be bought using mortgage). So when banks list these properties, cash buyers are scooping them as fast as they can. The banks recognize this and smartly are listing them slowly to maintain demand. Most of the action is in the affordable lower valued homes. Those are the types of homes that make great rental properties for landlords and also for fixing and flipping to first time home buyers. By the end of 2010 and throughout 2011 more and more cash buyers had entered the market stating “We Buy Houses” & look for bargains. Real estate is such an amazing bargain right now that prices are cheaper than they have ever been since the Great Depression.
A key feature of real estate investment is the significant proportion of total return, accumulating from rental income over the long term. From 1977 to 2007, approximately 80% of the total U.S real estate return was derived from income flows. Investments that depend on income return have a tendency to be less volatile than those that rely more on capital value returns, thus this helps. Real estate is also attractive when compared with more traditional sources of income return. There is a lot of uncertainty in the market after the previous fiasco. And so there is less inclination to invest in real estate. Sales are abrupt in some areas, but it is still ideally a buyer’s market. Most real estate investors who say “We Buy Houses” would like taking advantage of the good deals and buy, but general public may default in getting into these deal either due to lack of financial backing, or cannot get a mortgage. The prices will start to move up as these real estate investors who say “We Buy Houses” come out of the woodwork.
The other perspective to it lies with the selling community. The sellers have limited choices and do not want to sell in this depressed market. Most properties are being sold at prices way below what was paid for them. The diversification potential is another benefit of investing in real estate. In comparison with other major asset clauses, real estate has a low, and in some cases, negative correlation. This means the addition of real estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk. The nation has gone through a rough time economically, and the deteriorating real estate market and mortgage predicament were the main causes for this bleak phase. But things are on an upward swing, and at the end of this trend, when there are no sellers left and when all the banks are finally done liquidating their properties at bargain prices then prices can only go one way. And that way is up.
Peter hoxx is well known writer about present real estate scenario's. In this real estate world, every home seller want to sell their house for cash and quickly. Author explains in this article about how to be invested in real estate all time in america saying from his past experience as he use to say We Buy Houses Philadelphia. Contact us for more information about present real estate market or to sell your house as quickly as possible.
Five reasons to be invested in real estate all time in Ameri