Now Is The Best Time To Buy Real Estate
In Real Estate, buying at the right time is always important. Knowing when to buy can be difficult to determine, but if you time it right, you can do well in this distressed market. According to the U.S. Department of Commerce, home prices are at a 27 year low comparable to historic records and right now is the best time to buy real estate.
As an investor, being able to get in the market when everyone else is getting out is crucial to making a profit. Investing in properties that will turn a profit after calculating your expenses and debt service can be very profitable. Low interest rates, discounted home prices, and a large selection of properties to choose from gives an investor opportunities that have not been seen since 2002.
Although the foreclosure rate is at a near all-time high, so are the owners that are turning to renting due to being forced out of their homes because of foreclosure. Also, with mortgage companies tightening up on their lending criteria, many would-be buyers are unable to get a loan - this leaves a large inventory for the investors to buy, rent, and sell.
The present time is not ideal for the realty market. The decelerated pace has affected the sector. The leading banks have increased the interest rates of home loans and the inflation level is also rising. Therefore, putting together, the probable property buyers are feeling dejected. But perhaps there may be a silver lining. The prospective buyers are delaying their home-buying decision to buy properties because of a widespread conjecture of probable price reduction in times to come. How long one should wait and watch is however not known. Anuj Puri, the chairman and country head of the operations of the international real estate consultancy Jones Lang LaSalle Meghraj (JLLM) in India, says that the correction will take 4 to 6 months depending on the local trend of the market and the holding power of the developers operating in that location. JLLM also makes a forecast of 5 to 15% probable price reduction in different hyped micro markets of Pune, Bangalore, Gurgaon, Noida, and other such locations. The real estate India appears to be going through a rocky period. The real estate markets of South Mumbai, several other places in Mumbai suburbs, and some locations in New Delhi may experience a price reduction of even up to 10%. These areas already have seen unreasonable price trends. As per Mr. Puri, the problems for the developers to finish the existing projects as well as initiate new projects will escalate which will result in reduced incoming supply. This will also increase the consumption time needed for the existing supplies. The prospective buyer of India property will reschedule the decision of purchasing property because of his or her limited disposable income. Sonepat and Ghaziabad property market however has been quite stable and has attracted a lot of investors.For more view- realtydigest.blogspot.com
Comment by riathareja — August 11, 2008 @ 4:19 am