Financial Strategies by Bill Roberts: Is It Time To Invest In Real Estate?

Is It Time To Invest In Real Estate?

Is it time to invest in real estate? With everything that is going on in the economy, this is a major concern for almost everybody.

Let's look at this with a pragmatic eye:

Is America your home?

Is it going to continue to be your home?

Will our economy eventually recover?

Is inflation an absolute certainty over the next ten years?

Will interest rates stay this low?

When real estate"recovers" do you want to be an owner?

If we assume that America will continue to be your home and that when things stabilize owning real estate will be desirable, then the coming inflation is going to affect YOU and real estate in two significant ways: prices will be up and interest rates will be higher.

If you buy now, you can "lock in" a low interest rate (just make sure it is a fixed rate) and a good price. When the coming inflation hits you will be able to repay your loan with "cheaper" dollars.

Just think about it, if inflation turns out to be only 10% per year then every year your REAL payment will go down 10%. In ten short years your REAL payment will be less than 35% of what you started at. It also means that if you are making $100,000 annually NOW you will probably be earning more than $250,000 per year 10 years from now.

If you can afford the payment today, think how easy that payment will be in ten years!

This should be a "NO BRAINER." If inflation turns out to be much higher as some expert economists have claimed then the decision should be that much easier. Look at it this way: the more you borrow, the more you make.

Savers lose and borrows win when inflation hits. There is no time to waste. You've got to buy all you can as soon as you can.

Don't be left standing at the station when this train pulls out.

Please comment. All comments are greatly appreciated.

Bill Roberts

 

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9 commentsBill Roberts • August 25 2011 01:08PM

Comments

Hello Bill, Thanks for your post today. America is our home and yes its time to invest! :)

Posted by Krista Lombardi (Prudential Calfornia Realty) over 3 years ago

Hello Bill,

  This is a great time to invest in Real Estate. I have a number of out of state investors that are buying

properties to rent out.

Posted by James Loftis, Real Estate 911 Inc (Real Estate 911 Inc) over 3 years ago

Krista, Buy all you can. It is not just the time for "them," its also time for us.

James, Where are you?

Thank you both,

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 3 years ago

 "NO BRAINER."

Like the entitlement crowd?

By the time they earn their credit back they'll have missed the vote.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) over 3 years ago

Hi Bill A., That is a problem many of us have. I just saw a talking head on FOX BUSINESS saying  that problem was credit scores. I think we should run those rascals out of town. 

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 3 years ago

Bill.  If folks aren't buying NOW, they may never.  It's all about confidence.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 3 years ago

Hi Lenn, I think they need a little fire built under them. Every sensible economist says that inflation cannot be avoided even if the government and the Fed want to redefine what constitutes inflation. The Genie is already out of the bottle.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 3 years ago

Inflation cannot but happen based on the amount of money the FED has printed to do the various stimuli and "easings".  It is definitely time to buy!

Posted by Steven Cook, - Pierce, King, Kitsap, Thurston, Mason Counties (No Longer Processing Mortgages.) over 3 years ago

Steven, Some economists are predicting double-digit rate of inflation.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 3 years ago

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