Remember when real estate investing was the "in" thing?
Back then, there were two kinds of people: those who invested in real estate and those who wish they were investing in real estate.
Back in the day, there were as many articles about real estate
investing as there were about Paris Hilton, Britney Spears, and Lindsey
Lohan combined. Real estate was the water cooler conversation, especially since Seinfeld has been long off the air.
you could not buy real estate, you could still dream, and make no
mistake about it, it was the American dream. Many people still think
it is. And mortgages? If you could fog up a mirror while breathing,
Yes, not too long ago, real estate was the hot
topic, the in thing, an ideal retirement vehicle, and the way to become
wealthy. In the past 3 years or so, it has fallen out of favor for
most of us. Fortunes have been lost, time has been seemingly wasted,
and we all learned a lesson we will never forget. Many people have
washed their hands of ever investing in real estate again. They have
been burned once, and never want to be burned like that again. Some
people don't believe it will ever come back, and that, if it does, it
won't reach the high point where it once was.
Yes, real estate
investing has certainly made an impact on many people. For those who
still have some hope and faith left for real estate, there are very
good reasons to want to invest once more. Here are 5 reasons to get
excited about investing in real estate again:
1. We are at the bottom of the real estate market.
Each location is unique; one area may be on an upswing, while another
location may still be suffering. Overall, most would agree that our
country has gone through a rough time economically, and the declining
real estate market and mortgage crisis was the main reason behind this
depressive time. There are very good indicators that we are at the
bottom. Foreclosures have been slowing up, sales have been rising, and
some locations claim to not have enough inventory. Only after we are
out from the bottom, we will know we were at the bottom.
There is less competition. Sales are brisk in some areas, but it is
still considered a buyer's market. Many people would like to buy and
take advantage of the good deals, but do not have the money, or cannot
get a mortgage. As these buyers come out of the woodwork, prices will
start to move up.
3. Sellers are truly motivated. Many sellers
do not want to sell in this depressed market, but they have limited
choices. Many owners are selling at prices below what they paid for
the property. This market is ripe with motivated sellers and perfect,
therefore, for motivated buyers.
4. The term "short sale"
is now part of Americana, just like Watergate and Monica Lewinsky.
Foreclosures have been rampant, and some banks are now being
reasonable and making smart decisions for this particular market. The
short sale purchasers of today will spend their wonderful retirement
bragging about the great real estate deals they made.
Our country is now deeply in debt, and each day it sinks even further
into a hole we can only hope to one day crawl out of. Most of us will
not live to see the day our country is out of debt.
One day, the
eggroll may replace the hot dog, and the fortune cookie may replace the
apple pie. This certainly is not something we look forward to. We
cannot control what government does; only try to vote for the right
politicians. Because of all of this debt our country owes, it is only
inevitable that taxes will increase. That is one very important reason
to have real estate investing as part of your financial plan.
Besides all of the wonderful benefits that real estate has to offer,
being able to write off part of your income taxes is something that you
will come to appreciate more each day. There will come a time when
more people will realize that they need real estate to stem the rising
cost of taxes, and that will cause properties to appreciate even more.