One bright spot in the dismal real estate market is the rental market. Demand is up and rents are rising. That’s partly because those foreclosures have turned more than 4 million former homeowners into rents, but also because many other prospective homeowners, worried about losing their jobs or housing prices falling a lot further still, are reluctant to buy now.
As with many investments, the best time to get in is when most others are sitting on the sidelines.
Mortgage rates are at a 40 year low, and homes in many areas are ultra-cheap. Meanwhile, demand for rentals has risen in more than 500 cities. With this increase, it has allowed landlords to charge more. Hotpads.com, a real estate research firm, reports that rents nationwide jumped 11.6% in 2010 to $1,320 a month.
You’ll need that rental income to tide you over until home prices bounce back; in fact, the typical investor today plans to hold for 10 years, according to a survey by the National Association of Realtors. If you can hang on that long, you have got a good shot at solid gains, especially if you are financing the home.
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Are you trying to decide whether to sell your home on your own or hire a Realtor? Check out this survey to help you make a decision:
Homegain.com conducted a survey on selling your home: For Sale by Owner “FSBO” vs. REALTOR®. Homeowners were asked whether they used a REALTOR® to sell their home or whether they attempted to sell it themselves.
83% said they used a REALTOR® and 17% tried on their own.
59% of homeowners that used a REALTOR® to sell their house were successful vs. 39% of the FSBO’s reflecting a 50% higher closing rate for those using a REALTOR®
81% of the homeowners that used a REALTOR® to try and sell their homes said they would use a REALTOR® again for their Real Estate needs.
88% of the homeowners that used a REALTOR® to try and sell their homes said they would use a REALTOR® again.
71% of FSBO’s who managed to sell their home on their own said they would try and sell their home on their own again.
The survey also pointed out that 24% of FSBO’s eventually enlisted the aid of a REALTOR®
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Are you still on the fence trying to decide whether to keep on renting or take the leap into home ownership? You may never again experience these low home prices combined with the lowest interest rates ever again. Check out this handy calculator to help you see the advantages of home ownership. (CLICK HERE)
If you are still unsure, you should contact a REALTOR to discuss the advantages of purchasing a home and find out how much of a loan you can qualify for.
Don’t be left sitting on the fence saying should’ve…..would’ve…..could’ve Act now and contact your Real Estate specialist.
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