Why Investing in Real Estate During a Recession is a Good Idea
If you are still struggling with your decision whether to buy Telluride real estate or anywhere else in the country, then you may be missing out on the golden chance of cashing in during these most perfect investment opportunity. There is no better time than now to take the plunge and invest on Telluride properties or properties elsewhere that are currently available.
Here are the 7 BIG reasons why you have to invest on properties right now.
1. The real estate market is now predominantly a buyers market. Home buyers have this great opportunity of getting the best home buying deals. You will have a lot of choices of prime real estate properties that are priced lower than their real value. This is the best time to get the best value from your real estate investment.
2. For those who are on the sidelines waiting for the right indicators to move in, here is a bit of good news. It is also a portent sign that time is also running out for those who could not make up their minds. As of latest reports, the effective rate for a 30-year mortgage that is fixed rate is about 4.82% on the average. This is a big drop of 1% from the same period of last year. You will expect the real estate industry is already ripe for a big rebound as this is the lowest mortgage rate since 2005.
3. We have now an abnormally high inventory of home foreclosures. Mortgage lenders are forced to rein in on their increasing number of foreclosed assets and selling is the most judicious direction for most companies and banks. Expect to get some good deals if you look in the direction of foreclosed real estates.
4. First time buyers of real estate properties are entitled to tax credits. A buyer who has not owned a real estate property for a minimum period of three years and fall within the prescribed income bracket can avail of tax credit equivalent to 10% of the real property homes tag price but not to exceed $7,500. These tax credits can be applied by the home buyer for his taxes for 2008 and 2009.
5. There is an upward trend in rental rates due to increased demand for rented spaces. This is related to the increased preference of most families to rent home spaces amidst the difficulties that is hounding the real estate industry. Further, for those families going through foreclosure of their real estate properties, their logical direction and only option is to rent home spaces.
6. With the very volatile and unpredictable climate in the market of hedge funds and the increasing number of financial institutions succumbing to financial pressure, real estate investment is the way to go. It is the safest investment and for those who were able to cash are expected to gain windfall profits once the real estate market and the economy makes a rebound. Economic indicators show that such event is imminent.
7. With the combined effects of low interest rates and reduced real estate prices, you are expected to get more value from every dollar you spend for properties.
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