Deciding how to invest your money is an age old question that people have had trouble answering for years. In fact, you’ve probably heard of people who have decided that the best way to “invest” their money is to bury it in their backyards. Though it may seem easier at times, we can assure you that an investment in your backyard is no investment at all. Despite all the questions within the real estate industry today, it is still a great time to invest in real estate according to researchers at the University of Alabama at Birmingham.
With low rates and low prices, the market has set the stage primed for long term investments in real estate. Once the prices start moving again, they will likely continue the climb.
Lary Cowart, assistant professor of real estate and finance at UAB says this about the market:
“Holding out to try and find the lowest price is not a good strategy because if the house were to go down 10 percent but the interest rate goes up 1 percent you are not gaining anything. If rates go up 1 percent, say from 4 to 5 percent, that is a 25 percent increase in the interest rate; so the mortgage payment goes up by more than 10 percent and the amount of house that can be purchased goes down by more than 10 percent. People fail to realize that and it is another little thing that will cost them big over the 30-year life of the loan.”
For more information about investing in real estate in the greater St. Louis cities, just call the Linda Frierdich Team at 866-598-1179!
Image via Clare Bloomfield