Real Estate – Is it Worth the Investment

Real Estate – Is It Worth The Investment?There has been a lot of talk this year about real estate. I may be one of the few that still believes our local real estate market has a lot to offer. It has a lot to offer for first time home buyers and lot to offer for investors looking to hold property as a long term investment. It has a lot to offer for people looking to buy and resell.
Is the market a little slower than the boom years?? Yes, but it is still strong. Have prices tapered off a little in some areas?? Yes, but mostly due to over building and high foreclores.
I plan on sharing with you a few clips from news articles as we go to show you how I have come to my opinions of the local housing market. The first one is a article from Daily Real Estate News.
Daily Real Estate News | September 25, 2007
Comeback Cities: Top Places Ready for a Rebound
The oldest rule of investing: Buy low, sell high. With some housing markets bottoming out, now could be a good time to get ready to make money on the slowdown, says Business 2.0 magazine, which has worked with Moody’s Economy.com to identify 10 major metropolitan areas that are coming back to life after a slowdown.

The following is a list of the 10 metro areas identified by the magazine, including their projected median sales prices for single-family homes and the percentage of growth expected in the next two years. While the numbers are moderate, they are a huge improvement over what’s been happening in these cities and others, the magazine notes.

1. Dallas–Fort Worth
Q1 2008: $151,930
Q4 2009: $161,690
Growth rate: 6.4 percent

2. Indianapolis
Q1 2008: $122,940
Q4 2009: $130,630
Growth rate: 6.3 percent

3. New Orleans
Q1 2008: $153,850
Q4 2009: $162,600
Growth rate: 5.7 percent

4. Atlanta
Q1 2008: $177,750
Q4 2009: $187,640
Growth rate: 5.6 percent

5. Montgomery, Ala.
Q1 2008: $140,020
Q4 2009: $147,690
Growth rate: 5.5 percent

6. Memphis
Q1 2008: $143,550
Q4 2009: $150,730
Growth rate: 5 percent

7. Mobile, Ala.
Q1 2008: $134,580
Q4 2009: $140,920
Growth rate: 4.7 percent

8. Austin, Texas
Q1 2008: $186,350
Q4 2009: $195,060
Growth rate: 4.7 percent

9. Houston
Q1 2008: $154,850
Q4 2009: $161,910
Growth rate: 4.6 percent

10. St. Louis
Q1 2008: $143,920
Q4 2009: $149,710
Growth rate: 4 percent

Wow!!! Indianapolis #2 on the list! I believe they have come to that decision do to the decent economic growth we have had and are predicted to continue. I also believe the metropolitan area will continue to see a population growth that will help reduce the supply of existing homes driving our property values a little higher. If you happen to be looking to invest, population growth could be a strong indication of future demand. Hendricks County has the second fastest growing population of any county in Indiana.

The next article clip is from Fortune on CNNMoney.com from Nov 15, 2007. It compares rental rates to property values and the part I cut out shows their prediction for Indianas property values.
“….In a handful of cities, our formula suggests that prices will actually rise. Home values should increase slightly in Dallas, Indianapolis, Cleveland, and a few other locales the bubble missed. In Detroit houses are so cheap – the median is around $100,000 – that even a shift in the economy from disastrous to mediocre is all that’s needed to lift both rents and prices……”

My advice. Dont miss the boat. Property values have stabilized before the next push upward in Hedricks County. If you have thought about purchasing property now could be the best time to make that dream a reality. My next article clip is from Blanche Evans and Realty Times on Dec 10, 2007. It will describe the current situation with interest rates.
“…. Since 1971, only three years have averaged mortgage interest rates below 6 percent: 2003, 2004, and 2005. Only seven years have averaged under 7 percent: 1998, 2001, 2002, 2003, 2004, 2005, and 2006. And it looks like 2007 is going to join that list.
Because these low interest years have all occurred since 1998, it’s logical to assume that homebuyers think that 6 percent is the norm. But history says otherwise. If you put all the years between 1972 and 2006, your average mortgage interest rate would be a whopping 9.31. You’d be paying about $450 more for your home, just in interest payments. ……”

My next clip is from 2008.   Daily Real Estate News  |  March 12, 2008Buy Now, says Foreclosure Expert
Now’s the time to pick up properties at fire sale prices, says Ralph R. Roberts, author of Foreclosure Investing for Dummies and Flipping Houses for Dummies.
“Properties could double in value over the next 10 years. But you have to be willing to go in, buy them, and hang on for the longer term,” he advises.Well I hope you can understand why I think this current market is one the best times to buy real estate. Outside of mortgage money becoming harder to get, buyers have a lot of properties to choose from, sellers that are negotiable, and historic low interest rates.
First time homebuyers rates could be in the low 6’s giving you the opportunity to get a nice house with a very reasonable payment.
Investors. You have the chance to purchase nice homes that will cash flow with a reasonable downpayment. This gives you the opportunity to take advantage of what I call appreciation leverage to compound your returns. Not to mention the tax advantages of holding the property that could be of benifit to you.

Well I hope that gives you a better understanding of the current market in Hendricks County and the surrounding areas. 
Thanks, Don