Q: How do I know when it’s the best time to invest in real estate?

A: The best investments are obvious to everyone … in hindsight.

Now is the ideal time to invest in real estate.

Think about this: Would you invest in an upstart software company before anyone even owned personal computers? This doesn’t sound like the best return on investment for your money, does it? Think again. That unknown software company turned out to be the most successful software company in the world – making all of its original employees (including the secretaries and receptionist) – millionaires and billionaires! Of course I’m talking about Microsoft. One original share of Microsoft stock now equals 288 shares; it has split nine times since 1986!

The point is obvious – buy low, sell high! Buying and holding is a smart investment strategy as long as you do your research and select the best investments. Real estate is no different. Buying a home now while the supply of available housing exceeds demand means there are great deals to be found.

Consider the fact that interest rates are not going down much more than 1/4 percentage point anytime in the foreseeable future. But a raise in interest rates by a mere 1% equates to a 9% loss of buying power!

For example, a $200,000 loan at 6% interest cost $1,200 per month. That same payment at 7% now only buys you $180,369. That’s a loss of over $19,000! Buying an investment property now is a wise financial strategy! Don’t look back on the current housing market and say, “I should have bought a home then.”

Remember, hindsight is 20/20 and we’re giving you a look into the crystal ball now.

This entry was posted on Tuesday, December 26th, 2006 at 6:26 pm and is filed under First Time Buyers, Investors. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.