Reasons Why We’re Better Buyers Than Sellers
When it comes to the stock market, people are always on the fence of whether to be a buyer or seller. But isn’t that just how that particular industry works. There are times when it’s a seller’s market and times when it’s a buyer’s market.
That goes the same for real estate as well. With the economy built mostly on consumerism, it’s only natural that we’re better buyers than sellers. Using the skills you’ve unintentionally developed, here are some points that help reinforce why we’re better buyers than sellers:
1. Mortgage Interest Rates Are Low Again
Mortgage rates were so low that people were buying more homes than they needed. The majority of people sought to gain something out of the money they invested in their respective real estate properties.
What caused the housing collapse a few years ago is when people began borrowing against their property’s capital. To best avoid making such a thing possible once more, refrain from borrowing against equity as best you can. If you must borrow, take only enough that can be put back into the property.
2. The High Volume of Recent Foreclosures
The majority of homeowners had gone through foreclosure, unable to pay their mortgage or utilities for their living space. But that is not necessarily a bad thing for them.
As an investor, see the foreclosed properties an opportunities to invest in generating peripheral income. Buying rental properties will void any need of a mortgage payment, allowing for maximum income.
3. People Prefer House to Apartments
Finding an apartment is a pretty common thing for college students to do as they’re leaving home for school. But if you previously owned your own home and are now looking for an apartment, it may feel like a bit of a downgrade.
Remember as an investor the preference people have for houses over apartments. If you manage to bring in tenants whose last residence was a house, then they’ll likely already know the motions of taking care of a property that large.
When a person feels truly at home in a dwelling, they will often treat the property as something they invested in themselves.
4. Tenants Often Prefer Private Landlord
Property management companies, such as real estate agencies are often attempting to fill multiple houses and apartments. With their motivations so focused on filling the space, real estate agencies would require keys for all the places they show.
Some may find it unsettling, even after moving in, that more than one person could have a copy of that key because of the agency.
Tenants can rest easy with a private landlord knowing they are the only other person in possession of an apartment or house key.
“Lease-purchase” or “lease with option” is recommended, provided the property was bought at a decent rate (giving your tenant the option to buy). Knowing that the home is theirs to buy in the future will help ensure tenants maintain the property to the best of their abilities.
5. Real Estate Prices Are at a Low
The most common places to find cheap real estate are California, Nevada, Arizona, Florida, and Michigan. When one person moved from Maryland to Arizona, their housing payment dropped by more than 50% of what it was before.
Places like Oregon and Washington have anywhere from 50 to near 200-acre plots of land selling for less than $200,000. If you have a plan and everything else is squared away, now’s the time to find the plot of land with the space required and begin your real estate project.
6. The Short Sale Market
Short sales are often conducted by homeowners who still have a partial stake in the property they are residing in. Conducting a short sale with one’s property will help ensure that no more mortgage fees are incurred on the property.
When you are buying a short sale, you are also still buying from the owner themselves and not the bank in charge of the mortgage. If you are buying a foreclosed home that previously had a mortgage, there’s a good chance the inside may look worse than the outside.
A short sale will give you security in knowing you’re buying a quality product.
7. Real Estate is a Great Long-term Investment
Regardless of the time that passes, much of the land and buildings for sale retain their value despite the years that have passed. If any of your properties happen to be on a mortgage, the rent from your tenants can be put toward it, giving you better returns on your investments.