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.
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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.