Most Americans are a little sheepish about taking the homeownership plunge. Even with the election behind us, we’re still a ways away from a stabilized economy in Santa Monica real estate market.
However, this may very well be the time that you take a good long look at the real estate market and check your fears at the door. When the all the news in the media is bad, that may very well be the time to start thinking of buying real estate.
The fact is, there are more homes on the market now than in recent years. And not only that, the prices have gone way way down…as high as 25% in some areas. This is great news for home buyers.
And don’t forget that while mortgages are a little more challenging to get than in the free-wheeling home buying days, the rates are still incredibly low. Some banks are offering fixed rate loans at less than 6%. This is really great.
Many wise investors will tell you that when others begin to flee from a certain market, that’s the time to get involved. With so many people spooked by the Santa Monica real estate market, today’s buyers have more power than ever before. You can really drive a hard bargain and get way more house than you could have in recent years.
And we haven’t even touched on foreclosures and reo’s yet. Sadly many people are losing their homes. It’s a terrible situation made worse by a challenging economy. But remember you didn’t do anything to cause the homeowner to suffer financial difficulty, so you shouldn’t feel guilty about writing an offer on a foreclosure or reo. Take advantage of this opportunity before it passes you by.
For those readers who are looking more for an investment than a place to live, consider the many benefits of buying rental property in this market. For starters, financing isn’t as easy to get as it once was. That fact alone is creating a significantly larger rental market. This is also coupled with a financial downturn, so fewer people are buying and more are renting. So rental prices are beginning to creep up.
This is great for the savvy investor…lower buying prices, and higher rental rates can equal a great investment. And don’t forget the tax write-offs that you get from expenses, depreciation and interest. Buying rental properties is all about cash flow when comparing your mortgage payment and expected rental amounts. When the market was booming, it was hard to make the numbers add up due to large valuations and resulting mortgage payments. That lanscape has significantly changed with the lower valuations.