The real estate market is slow, building is slow, loans can be hard to get, but it could be worse. As a matter of fact, it is a bit better than it was a couple of years ago.
For home buyers who intend to live in their home for years to come, you will weather the storm. The investors who were careless a few years ago are paying a price. The market for the folks who have money or access to money is very exciting. Today’s prices are deals in many cases for the educated buyer. By educated buyer I mean someone who has taken the time to investigate or have someone trustworthy investigate for them a property’s potential.
There are still people out there that for a variety of reasons will rent residential properties. Actually, figures show there are more renters out there today than in the recent past. Yet not every home is in a great rental location, price, market, etc. and all factor in.
Timber tracts, Agricultural tracts and other Recreational properties can in many cases today be bought for less money than a few years ago. Agricultural tracts out of the three have held most solid and are expected to continue to do so. Their income producing ability is the key.
When you use a professional real estate person to assist you in buying or selling a property, ask them questions. I am a realtor and I am also an investor. I should be able to answer any questions you may have or be able and willing to get you the right answer so that you can make a good decision.
In today’s markets and thru history money can be lost more easily than made. The ‘real estate bubble’ from a few years ago when money was made easily was not realistic; it was in many ways smoke and mirrors. Real estate whether improved property or vacant land is usually a long term investment requiring a plan laid out from the beginning. It is generally not a quick way to riches but can provide diversification and in many cases immediate gratification as a property owner enjoys his investment. Some land owners are not managing correctly or in some cases not managing at all. This can be wasted income or ‘lost’ money. Know the potential of what you are considering investing in. Historically, most persons of wealth have land with a management plan in place as a part of their investment portfolio.
Lastly, for the property owner who is in trouble financially or upside down in a property, I would advise a trip to a financial planner as well as an assessment from a knowledgeable real estate professional. Be realistic because values have adjusted and you may have to adjust your plans accordingly. Most properties, especially investment properties can be managed to generate some income. If that is possible and the potential income is enough, then there may be options other than foreclosure. Check out your options!
G. Monroe Rogers