If you are sitting on the fence waiting for interest rates to go down before making the jump into real estate investing, I am going to suggest you hop right off that fence, call your favorite Mortgage Broker, and have a chat.
Personally, I believe the best time to buy, is when the masses are not. Prices will be reasonable, sellers’ motivation will be up, creative financing can be your friend, and conditions pertaining to financing, home inspections and even the sale of another property are welcome.
Real estate can be a tremendous investment no matter what the stock market is doing. It is one of the time-tested ways to create passive income, build wealth, and grow net worth. I have actively invested in real estate; both through purchasing my own homes and physical properties like rentals, and do not plan to stop anytime soon.
Rental real estate in particular can be attractive today because it offers a hedge against inflation. Real estate values and rents tend to rise with inflation, meaning your investment holds its value rather than losing it due to inflation. Moreover, short-term leases, like a residential one-year lease, allow investors to adjust rents to reflect rising costs while maintaining a desired return,
As a current homeowner, you may be reluctant to list your home under these conditions. Understandably so. You will net less proceeds from the sale than you might have just a year ago, it is however important to remember, you will be buying AND selling in the exact same market conditions.
Lock in your rate for a year or 2 then renew or renegotiate when the term is up. You will have surely gained equity and gotten used to higher payments, if you keep up the higher payments with the lower rate, well then my friend you will have won the game and will be further ahead than the ones that are still sitting on the fence!