Is it time to invest in real estate? With everything that is going on in the economy, this is a major concern for almost everybody.
Let's look at this with a pragmatic eye:
Is America your home?
Is it going to continue to be your home?
Will our economy eventually recover?
Is inflation an absolute certainty over the next ten years?
Will interest rates stay this low?
When real estate"recovers" do you want to be an owner?
If we assume that America will continue to be your home and that when things stabilize owning real estate will be desirable, then the coming inflation is going to affect YOU and real estate in two significant ways: prices will be up and interest rates will be higher.
If you buy now, you can "lock in" a low interest rate (just make sure it is a fixed rate) and a good price. When the coming inflation hits you will be able to repay your loan with "cheaper" dollars.
Just think about it, if inflation turns out to be only 10% per year then every year your REAL payment will go down 10%. In ten short years your REAL payment will be less than 35% of what you started at. It also means that if you are making $100,000 annually NOW you will probably be earning more than $250,000 per year 10 years from now.
If you can afford the payment today, think how easy that payment will be in ten years!
This should be a "NO BRAINER." If inflation turns out to be much higher as some expert economists have claimed then the decision should be that much easier. Look at it this way: the more you borrow, the more you make.
Savers lose and borrows win when inflation hits. There is no time to waste. You've got to buy all you can as soon as you can.
Don't be left standing at the station when this train pulls out.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved