A Prospective
real estate investor should not assume that home or property prices can be
stable or have fixed price over time. It is advisable to
take a brief trip through some of the predictions from years gone by before
concluding on the naysaying of so-called forecast experts,: The prices of
houses seem to have reached a climax, and there is reasonable expectancy If you have bought your house since the War
era. At the top of the market, you can make your deal. The era when you could
not lose on a house or property purchase is no longer feasible either.
The objective of owning a home seems to be getting beyond the reach of a Common
Man. An average new 2 to 3 bedroom house put on for sale today costs about
N15million to N30millin in cities with low industrial concentration and
N50million to N100million in high-density areas like Port Harcourt, Abuja, and
Lagos.
Therefore
it is pertinent to act on the mindset that tells you “Now is the right time to
buy” because prices and rents would continue to be higher as persistent
inflation will force properties to remain on that trend. Housing experts
predict that in the future price increase won’t be that tremendous. As reported
in the global business press (Nation’s Business, June 1977) The era of easy
profits in real estate business may be drawing to a close.
(Money, January 1981) In California, for example,
it is not unusual to find families of average means buying $100,000
(N35.9million) houses.
Financial planners views about house buying can
differ dependent on purpose (San Francisco Examiner, November 17, 1996) Your
house is a roof over your head. It is not an investment. Some economist agrees
that real estate will continue to be a poor investment. In Kiplinger's Personal Financial write-up,
November A home is where the bad investment is and Karen Ramsey’s, Everything
You Know About Money Is Wrong and Reagan Books, 1999 The trends that have
produced the housing boom.
It is of note that when markets change, that
change creates opportunities, therefore, you can Build Wealth in Any Market The situation as it only is known facts that,“ Change is the only constant thing.”.
Here are just a few examples:
1. When prices increase fast, you can “fix and
flip” for easy profits.
2. Dwindling interest rates (even with stable
prices) reward you with a refinance that lowers your monthly payments and
increases your cash flows.
3. Increased inflation rates drive up market
interest rates and cut down short-term demand. That’s the right opportunity to
look for
4. i.) Seller financing,
ii.) Lease options, and
iii.)
low-interest-rate mortgages that you can take over (assume) from the sellers.
5. Appreciating prices also give you the tax-free the benefit of cash-out refinances.
6. Depressed markets provide you with an abundance
of foreclosures, motivated sellers, and bargain-priced properties.
Increased rates of inflation also reduce the
number of newly constructed houses because builders must pay higher
construction costs and higher interest rates. Low housing emergence clearly
indicates an excellent time to buy. A slowdown in new housing always
foreshadows a jump in prices as growing demand outnumbers new supply. The possible cause of a few properties is as
a result of restrictive land-use controls, environmental protection, and tight
growth management policies. These moneymaking examples merely touch upon the
multitude of strategies you will discover throughout this article, but they
illustrate one central message that I have advocated throughout in my summation
with the decision below:
Q. When’s the right time to invest in real estate?
A.“Now”. Before that, it is better to do research
on options.
By saying
“Now” doesn’t mean that you can always be right. Rather, I mean that there’s
never a wrong time to invest in real estate if you choose the right step and
the right strategy.
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