It is no accident that we have the saying ‘safe as houses.’ Real estate has long been considered one of the wisest investments a person can make. It is also said to be the most substantial. For many people, their house is the most expensive thing they’ll ever buy. It is no surprise then that the decision about whether to buy real estate in the current financial climate is a momentous one. Here a few things to consider before becoming a homeowner:
Availability: Whether you’re buying your first property, or you’re seeking out the latest addition to your portfolio, there are always homes for sale. Whether it is a buyer’s or seller’s market, there are certainly many varied and exciting opportunities to get your foot on the ladder.
Low-interest rates: It may be as a result of the global financial crisis, but the fall in interest rates to all time lows is a good thing for prospective real estate investors. Your mortgage will be more affordable, and you can therefore pay it off quicker.
Banks are more confident: As a result of the housing crash of 2007 and 2008, banks became reluctant to loan money, making it difficult for many people to buy a house. As the economy has improved, they have started to regain their confidence and with a good credit score and a steady job, you should be able to secure some money to make the right investment for you.
Ease: Just like in nearly every other sphere of our lives, technology has made buying a house easier now than it ever was in the past. Gone are the days where you had to employ an estate agent, drive around to all of the properties to view them and then start the slow process of a communicating a bid to the owner. The internet allows you to learn so much about properties on the market that you will be able to get a feel for what you want without leaving your home. Only then do you need to about picking the best options to view in person.
Security: Houses are reassuring, not just as shelters from the elements, but as investment opportunities themselves.While the market may fluctuate and the value of your property will fluctuate with it, only things like accidents or natural disasters can destroy the actual house itself. A physical structure is in many ways a better option than stocks or bonds. Investing in a company can be a stressful thing to do: one PR slip and your nest egg will have lost some of its lustre.
The decision to invest in property right now remains a personal one for you and you should seriously consider not only some of the factors given above but whether it makes sense for you right now. You might need to consider the demands of a growing family or just about your own future. Either way, as far as the market is concerned, this is a good a time as any.