2010 = the year of the buyer.
Twenty-ten or two thousand and ten? It doesn’t matter how you say it, this year is something special. Sure, it’s the start of the new decade, but if you’re watching the signs and connecting the dots, 2010 could be your year to make huge financial gains in real estate. This is truly unprecedented…
Take a look at this convergence–
Low Interest Rates. Just this week, indications of higher interest rates are fading. That’s right… fading. This article at Bloomberg shows why. The economy, while no longer in free-fall, is in slow motion recovery. Should Ben Bernanke announce an end to the artificially low rates any time soon, we could start sliding off the side of the mountain again.
Government Rebates. The extension and expansion of the home-buyer’s credit is unprecedented. Whether you believe government handouts are a good thing or not, they’re a reality. And who doesn’t want free money to the tune of $6,500 for many existing owners and $8,000 for first-time buyers. Cha-ching.
Phenomenal Inventory. With existing owners putting their homes on the market in order to get the tax credit on top of the traditional “heading into spring” inventory boost, it’s a solid buyer’s market. But did you know that there are loads of foreclosed properties that haven’t even hit the market yet? Banks have been holding inventory for months and expectation is that they will soon be opening the floodgates. Bargains will be available in nearly every neighborhood.
Coming Inflation. What do you get when the same government that holds interest rates at 0% for an extended period of time also prints money like there’s no tomorrow? A falling currency value. And that means the price of everything has to rise. It may take a number of months yet before this really starts to happen, but not only will the money you borrow be worth less, the house you bought with that money will be worth more. That spells e-q-u-i-t-y with a capital E.
The result? If you’ve even hinted at a thought about buying a house, whether as your primary residence or as an investment, THIS IS YOUR YEAR. Not in your lifetime will you ever again see such an opportunity for building equity and wealth.
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