Top 5 Reasons to Buy Investment Property Now
Are you thinking of buying investment property but still thinking about it? I’ll give you 5 good reasons why I think you should buy now.
- Harp 2.0 – What’s the big deal about Harp 2.0? This program allows homeowners to refinance their property if your loan is owned by Fannie Mae or Freddie Mac. The guidelines are really easy including an unlimited LTV (loan to value). So even if the borrower owes $300,000 on their mortgage, and the home is worth $150,000 the option was foreclosure or short sale. Now, it maybe possible to refinance under this new Harp 2.0 program. If borrowers can refinance, this will reduce housing inventory causing an upward movement in pricing.
- Interest Rates – Interest rates are at all time lows. Will these be around for a long time? I doubt it, rates on 30 year mortgages have been moving up lately. As the stock market continues to get better, I feel people may move some of their money from treasuries to stocks.
- Rental Demand – Buy versus Rent? This is the question most first time buyers have. There are still a lot of short sales on the market and some people won’t qualify for a the new Harp 2.0 program. Some people just want to rent because they don’t want to commit to anything long term yet. This housing crisis has caused many divorces, and uncertainty. A lot of kids are moving back with their parents, even McDonald’s had a commercial about moving back with mom.
- Consumer Confidence – How many new cars have you seen on the road lately? This maybe a small preview of consumers slowly getting confident to buy something new. Sure they can afford a $200-$300 payment because their debt levels are low and their savings are high. I think in the next 2-3 years, as housing prices move up, these same consumers would probably be able to buy a home again after their foreclosure or short sale.
- Rate of Return – So you have your money sitting in a money market earning less than 1%, why would you even do this? I’ve seen condos as low as $19,000, you can buy these and rent them out for a nice return. Have a plan in place so to estimate if you are earning about 10% on your real estate investment in 10 years you will get your entire investment back, plus the appreciation of value over the 10 years.
If you need any assistance with finding investment properties, please email me at punjani@mygpsagent.com I can also be reached at 707-636-4736. You can also visit my website at www.mygpsagent.com
Thank you,
Sameer Punjani
Broker / Owner
mygpsAgent.com
BRE # 01311106
