Oh what a convoluted web our financial picture is these days. Thus, it is with a sense of wonder that I take upon myself the mantle of championing real estate as a good investment. What credentials do I have for making this claim? All my life I have been invested in real estate, either personally, with my parents, or with my spouse. In this economy we have now, I believe real estate represents one of the best avenues to restore assets lost in our recession.
In 2004 and 2005 we divested our holdings, at that time 5 rental homes. My husband had grown tired of managing the properties, so we sold them off. I might also add that we had moved 600 miles away so this had become a cumbersome chore. We had never utilized a rental agent and in retrospect this was probably a failing on our part.
The reason I've done an about face on the real estate investment concept for the average person is from personal experience and from information gleaned from Realtors I've recently worked with. With all the foreclosures existing in the US today a large pool of good rental candidates is seeking housing. The attitudes of Realtors has changed toward managing these rentals. The rentals they manage are a better product and the rents are higher, resulting in better fees to them.
Additionally lenders are making loans for investment properties. I was surprised to find this. Granted the requirements now are followed to the letter of banking guidelines, but loans are available. Interest rates are still very low. It is possible to buy a substantial home for $125,000.00, put down a 25% down payment and finance the balance at 5.5%. Your monthly payment will be around $530.00 a month. Your rental income should be hundreds of dollars in excess of all your expenses. Generally a family does not want to move every year so once you have your good tenant in place and your Realtor /property manager, you are set. As our economy improves and your investment grows in value, as it should if you do your due diligence in selecting your subject property, you have a safe place for your money that will outpace most other long term investments. You are also gaining equity in your property as the years go by.
Real Estate is something I feel comfortable with after years of being involved in buying, selling, and managing. I do not manage the one rental I have now, but the Realtor I have employed to do this for me does a more than adequate job. The tenant in the property has so far been excellent in fulfilling the terms of the lease. There are so many excellent properties available I recommend checking into this viable investment.
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