Sanctuary Real Estate

Posted by: Rita Bacot Scott, Broker, Sanctuary Real Estate                                                    December 4, 2008

A great read if you are considering purchasing in the near future. With falling interest rates and an incredible Buyer’s market you could end the year with a new home at a great price....don’t miss out. Call your Sanctuary Agent today - www.yourownsanctuary.com

Read on

Buying Advantages in an Economic Downturn

By Jeff Adolph

Real Estate Trends

It is often concerning when the cost of living rises, and you bear witness to stock market crashes. In fact, many believe that if the economy is declining then so too should their spending habits, especially in relation to big ticket items such as real estate and property investment.

This belief is usually attributed to the fear of job loss and reduced employment security, and many individuals think that they are better off selling their real estate acquisitions and renting, rather than have a mortgage during such financially tough times. In addition to this, those people who were considering making a real estate purchase are often deterred by the fear that their investment may decrease in value, just as the stock market has.

However, the truth of the matter is quite the opposite, and there is no reason why you should sell your home and rent, or not buy that house that you have had your eye on, because there honestly has never been a better time to invest in real estate.

Why? I hear you ask.

Well let me explain. Here are some of the advantages of buying a home 'during an economic decline':

1) Solid Investment -Real estate represents a solid investment in an economic decline as the housing market is not as volatile as the stock market, and represents a far lower risk. This is because real estate is a more expensive investment with not as high a turnover as the stock exchange.

2) Less of a Housing Demand - During an economic decline there is less of a demand on homes, making the real estate market buyer-centric rather than seller-centric. This means that buying real estate now will give you greater negotiation power, and you possibly may be able to buy a larger home for less.

3) House Prices are Consistent- While many people will warn you that your home value will decline as they did during the great depression; it is highly unlikely that house prices will remain depressed. In fact, in the past 30 years of American realty history there has never been many consecutive years of reduced home values. And, if homes values are depressed they always recover and gain in momentum to be an asset rather than a liability.

4) Take the Guesswork out of Home Buying - Make smart, educated home purchases, instead of buying a luxury home or a million dollar mansion buy conservatively but modestly. This way you home should gain in value, especially if it is priced in the mid-to-lower price ranges when you purchase it,

Overall, the key to any investment is buying wisely and always be financially focused rather than emotionally, this way you will always find yourself in a commanding position and able to get the most for your dollar.

Source: Improving Your World (2008) Advantages of Buying a Home During an Economic Decline; available online at www.improvingyourworld.com