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1. Buy and Hold Real Estate
It may be time to take a good hard look at the Real estate market and
decide on our own. With all the negativity surrounding the market over the
last few years let’s take a look at what really matters.
Most investors are looking at property values as the only criteria as when to
buy and what to buy. This is a major factor in deciding when to enter the
market but a closer look shows that it should not be the only criteria. Trying
to guess the bottom of real estate values could leave you with out the best
deal.
With mortgage rate at a 35 year low
this can work to our advantage. Most
experts think that we have seen worst
in real estate values. What should be
expected is some ticks down but that
the sharp declines and drastic hits for
the most part are behind us.
Now let's take a look at how values and rate affect us
When thinking about building a rental portfolio the number 1 thing to keep in
mind is "CASH FLOW". Popular opinion is the cheaper the better.
Consider this, not the cheaper the property rather the cheaper the payment.
This is where the terms of the loan come into play. In many situations the
terms are going to create a better deal. Follow the example below;
A rental house that cost $100,000
$100,000 @ 5% = $537. A 5% decrease in property values with a 1 percent
increase in interest rates proves to be a bad deal.
$95,000 @ 6% = $570. A 6% or $33 difference in payments.
Zack Wiest
PaDEals.com
717-901-7763 Ext. 300

2. There would have to be a decrease in property value of greater than 10.5%
for the payments to be the same.
So the questions remain: Is it time to buy? Are we at the true bottom (rates
& values)? If I wait for property values drop will I miss the bottom of the
interest rates?
With values at an over corrected state, rates at a 35 year low and inventory
starting to decline now may be the best time to buy. The Investing Cube
offers the best real estate investment properties anywhere in the US.
Register to attend one of our upcoming Intro Tour webinars and see just
how great our company is!!!
PaDeals.com
Zack Wiest
PaDEals.com
717-901-7763 Ext. 300