subject: Why Is Real Estate A Good Investment [print this page] It's been a rocky time for the real estate market across the country. Regardless of where you live, you many have watched helplessly over the past few years as your property's value has decreased. It has been painful, and because of this, many people are not eager to jump into homeownership right now. People are running toward apartment rentals in droves, causing apartment vacancy rates to decrease and monthly rents to increase in cities across the country, including in Denver. Renting is often seen as the safer option, but is this really the right decision? Why should you consider purchasing properties right now? Here are a few reasons:
Interest rates: Interest rates are at historical lows. We may not ever see interest rates like this again, and you will be regretting it in a decade if you don't take advantage of them right now. Your buying power is greatly increased with the current rates. The average interest rate for a 30-year fixed rate is just below 4.5 percent. This rock-bottom rate will greatly increase your buying power. For example, the monthly payment on a $250,000 loan at 5.25%, once considered a low interest rate, is around $1380 per month. In contrast, the monthly payment $250,000 at 4.5% is only $1266. You can see from this example that the low interest rates will either save you money, or allow you to bump up your price range in your home search.
There are great deals everywhere. There is a great selection of homes right now on the market, and you may be able to purchase one of them for a great price. The high number of short sales and foreclosures on the market are priced well, but they also mean that regular homes will be priced lower to compete with them.
Tax deductible Don't forget that any mortgage interest and property taxes that you pay on your home are tax deductible.
The real estate slump is only temporary: Believe it or not, this slump will not last forever. If you are looking to stay in your home for a short time period, or you are really concerned about keeping your monthly payment low, you might consider renting may not be for you.
These are just a few things to think about as you consider purchasing a home. It is a good idea to consult with an experienced real estate agent, who will help you decide if investing in real estate is the best financial decision for you at this time. We wish the best of luck in your home search!!
