Posted by Noemi | Posted in Real Estate | Posted on 05-10-2009
For years, investors have been buying homes with the goal to generate money and create wealth. Today however, the media will have you believe that the real estate bubble has collapsed and that you could no longer generate money acquiring realty. Newspapers and television reports love attention-grabbing news. However, are headlines based on facts or fashioned to get you to tune in?
Take a look at how the headlines could read.
Real Estate Costs Plummet or Realty Prices Wane Somewhat
Back in 2006, the median real property price across the nation dropped just 1.7 percent. That figure sure enough does not indicate a bust in the real estate market. The way house values increased over the previous ten years, that down slope is more of a bump in the road than a big tragedy. Because most investors buy low and sell high, a 1.7 percent drop in prices would not mean that investors are not able to generate a profit acquiring properties.
The Country’s Housing Market Crashes or the U.S. Still Requires Housing
According to reports in the media, the turn to a purchaser’s market signals that too many homes languish on the market. Still, the number of new families being formed and a rising population continues the pressure on the real estate market. The U.S.’s expanding colleges and universities go on to turn out qualified grads who are in need of housing.
Mortgage Interest Rates Escalate or Interest Rates Still a Good Buy
Even though headlines say rates of interest are climbing, long-term mortgage rates are only roughly a percentage point more than historic lows. Many investors remember paying 12 percent or more interest and consider today’s interest rates to be a real buy.
Unemployment Ascends or Employment Stable
Numerous news stories spotlighted areas where people were losing their occupations. However, national unemployment rates are lower than any time in the recent five years. The country’s unemployment rate signals that Americans are better positioned to make their home payments and will continue to be qualified for new mortgages.
Economy Troubles or Consumer Purchasing Trends
Headlines shouting that the US economic system is destroying itself are countered by consumer economic votes. Each dollar spent is considered. Consumers cast their votes and spent an unprecedented amount on Halloween decorations, candy, and attires. Consumers who have no liquid income wouldn’t purchase candy instead of healthy food for their children. Home improvement spending is also at an all time high. Consumer buying bolsters the US economy.
What do these story headlines mean to investors? Well-read investors can nevertheless turn a profit purchasing houses.