Joe Capote – Certified Investment Agent Specialist Expert in Real Estate Investments and Properties

Clients have been asking me, “Why is now the best time to invest in the real estate market?” The answers may surprise you.

1. Rising Rents. According to NAR chief economist Lawrence Yun, rents are expected to rise 7% or more this year. This is due to the influx of renters into the marketplace, thanks to distressed properties.
2. Attractive Sales Prices. Nationwide, home prices are lower than they have been in the past twenty years. This has resulted in excellent cash flow and cash-on-cash return for real estate investors.
3. Real Estate is Appreciating. Real estate prices have bottomed out. In fact, there has been appreciation in price in certain areas. The amount of inventory is low, but the amount of buyers is stable and increasing. This has resulted in greater competition for homes and sales prices are increasing as a result.
4. Distressed Properties. Distresses properties, such as short sales and REO’s, continue to make up a large percentage of the housing inventory. These properties can make good investments, as cash heavy investors get first crack at well priced foreclosures and short sales.
5. Increased Lending. Lenders have started to lend money again. Leverage is a key component of real estate investing and lenders are making loans. The days of the no-cash down, no income verification may be over, but loans are being made on properties that produce good income.
6. Good Returns. Investing at any level is about getting good returns. Median home prices have consistently beaten the S&P 500 average, even with the recession. Cash flow and tax benefits have given real estate investors a better return than stocks, bonds, CD’s and mutual funds.

 Joe Capote specializes in real estate investments and properties. He can be reached at jcapote@apr.com.