I traveled the world over the last few months and avoided the newspapers wherever I went. Even without reading about economic woes, it was evident that the economy is hurting everywhere.
Retailers were offering 30, 50 and 70% reduction on their stock, and it wasn’t even time for end of season sales. Even the latest fashion in fashion capitals of the world was on sale. Cars, books, shoes – no matter where I looked, I could find it on sale.
Here at home, things are not any better. In my daily work I am seeing Real Estate offices merging or closing down. The retail stores are literally bursting with sales, and sadly, shops are closing too.
Before leaving for my holidays I was negotiating an investment rate with a bank to stash some cash away. I was happy because I got 6,80% fixed term for 5 years. Unfortunately I didn’t act fast enough, and I lost the rate. By the time I returned, I discovered that the rate had dropped to 5,90%. While I am still looking for better deals, I think these things are a strong indication of what is happening with our Economy.
Investors everywhere are fed up with losing money on stocks and bonds, and they are turning to the banks. The banks are smart, and as they see the investors coming, they are dropping their rates.
So if you’re a savvy investor, where do you turn? Right now, the clear choice is HOUSING.
Of course, that is where I come in. Right now in our local housing market there are some incredible bargains available. Prices are low now, but of course that won’t last for long. When investors begin making their moves in the housing market, prices will rise. You need to get in before it’s too late.
I took a client to see a home this week that they would never have been able to afford five years ago. While their financial situation has not really improved, their ability to buy has. Homes are going for far less right now than last year, or even five years ago. Again, I stress, you need to buy now before prices go up again!
When I analyse our local economy, I do it from a variety of points. I was away for 40 days, and yet I can count on two hands the homes that sold during that time in my beloved Suburb of Sorrento. To say I was shocked to see most of the inventory still available upon my return is an understatement.
Obviously when you sell real estate, you appreciate when prices are high. Yet for clients who really want to get in, this is the absolute best time. As an investor myself, I know now is time to buy. I’m currently focused on finding an ocean front property. Right now I can afford to buy properties that I couldn’t have touched a few years ago.
If you are young, you have the opportunity to buy now and see an appreciation as the market corrects when the economy improves. If you are old (oh, dare I say, like me) you can enjoy the fruits of your labor now and feel good that you can leave behind some appreciable wealth for your heirs.
However, this opportunity won’t last. What goes up must come down, and conversely what goes down will, eventually, go up. Act today, and you’ll be patting yourself on the back when the market rebounds.
Best of all, to attract borrowers, interest rates are low and are anticipated to stay that way for a while. Banks need to loan money to survive, and they will continue to make rates attractive to help jump-start our housing market.
If you are ready to sell your current property so that you can buy that property you have always dreamed about, now is the time. While you may take a small hit on the sale, you will position yourself for huge gains with your purchase.
So give me a call and join me in grabbing some of the best property deals of our lifetime, in this “down” economy — right now!