The Real Estate Market Offers Lots of Opportunity for Solid Investments in 2013

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If you think back to just a few years ago, the devastating effects of our stock market crash seized many people’s financial portfolio with grappling waves of aftershocks. But now  real estate investments are making a comeback. It was hardly a year ago that billionaire investor Warren Buffett spoke on how he’d invest in single-family homes on a large scale if it were practical.

But for the average investor, investing in a single-family home is a very practical venture to get into.

Consider this example:
On a $150,000 house where if you were to put down 30% leaving a loan of about $100 ,000 or so you would end up with a monthly payment of around $750, give or take some. This is assuming an interest rate of 5.25% to be generous but with today’s low interest rates in the low to mid 3 percent range, the monthly payment would be even less. Depending on a number of factors such as location, amenities, style of home and area rental market, you can expect to yield anywhere from $900 to $1,200 each month in rental income.

Clearly, the ROI is strong and as you are able to ride the rate on inflation you will enjoy a sizable return month after month after month. Assuming your down payment is about 30%, the profit when you decide to sell the property will also be worth your while.
So as you look to 2013 and sit down to make financial decisions that will impact the rest of your life – consider investing in a rental home. The market is ripe with low interest rates, low prices and a number of good properties available for sale. Contact me today to get started on your customized property search.

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