I know I’ve been saying this for a while, but now is a wonderful time to buy a personal residence or investment property. With Obama proposing to extricate the government from mortgage lending, waiting for a year or two isn’t a good idea. With this new plan, potential homebuyers will end up paying a price in the end.
We don’t know yet what the changes will be, and how immediately they’ll take effect — maybe as early as next fall? — but here’s what homebuyers may be looking at when the changes are implemented:
- More expensive mortgages
- Higher fees attached to obtaining a mortgage
- Higher interest rates
- Higher down payments
What does this mean for us as a country? Less home ownership. And a larger percentage of Americans deciding to remain in rentals. Great news for us investors!
As you know, home prices have been driven down over the past few years. They’re probably going to bump along the bottom for the next year or two. This is terrific news for those of us who are in the market for a home, whether we want to live in it or rent it out. We landlords are ecstatic, as the rental market is very strong; people who have gone through foreclosure are being pushed into rentals.
So whether you’re in it to buy a perosnal residence or an investment property, now is the time . . . buy it now! Trust me — the flat economy and the down real estate market — this too shall pass. The real estate market will find a resurgence in a few years and you’ll make money on your investment.
Onward and upward!