It’s been about 5 years since the peak of real estate in 2005, and many people are asking the question – “Is now REALLY the best time to buy real estate?”

Everyone knows that it is virtually impossible to time the market perfectly. Even the savviest of all investors doesn’t get it right all of the time. For example, Warren Buffett is considered to be one of, if not the smartest investors of all time. However, here is a quick example of one of his most recent investments:

In September 2008, Mr. Buffett invested $5 billion in Goldman Sachs to help them deal with the financial crisis. As part of the investment, he was given an option to purchase Goldman Sachs shares at $115 per share. Well, 2 months later the shares were worth only $47 per share, Mr. Buffett’s investment had lost about $2.9 billion in value, and people were wondering if he had lost his touch. Well, fast forward only 10 more months and on the one-year anniversary of his investment, the markets were recovering and Mr. Buffett had made an incredible profit of about $3.1 billion! While his timing wasn’t perfect, he sure is looking like a genius on this investment.

So this brings us back to the question – “Is now the best time to buy real estate?”

While we can’t definitively state that now is the absolute best time to buy, there are many factors which suggest that you may never have a better time than right now.

1. Prices – Prices for land in many places have dropped 50-60% since 2005. While there are signs that prices are stabilizing or even starting to go up, now is still a great time to get a deal on vacant land or a new home.
2. Interest rates – Current interest rates are at or near 50-year lows. Considering basic economics, interest rates can only go so low and are currently at or near the very bottom. So what does this mean for you? Huge savings! Even just a 1% increase in interest rates on a $500,000 mortgage costs an extra $110,000 over 30 years. You can’t time low interest rates any better than right now!
3. Incentives – Builders and developers continue to offer incentives on their properties. For a limited time, we’re offering to pay your ownership costs including association dues, property taxes, and interest* for 1 full year on any inventory home you purchase in one of our communities. In essence, you have virtually no risk for 1 full year and you get to enjoy all of the upside potential!
4. Life stage – For the past 5 years, it seems that most people have been in a “holding pattern” as a result of the fear of the unknown. Well, many of our clients are recognizing that it is important to start enjoying life again before it passes them by. Your vacation or primary home is much more than an investment, it is a place to create memories, share moments with the people you cherish, and bring back the joy in life that seems to have disappeared for the past few years.

In the story above about Warren Buffett, he stated that he invested because “The price was right, the terms were right, and the people were right.” Well, these same factors are all pointing in the right direction for real estate today:

• Price – Incredible discounts and incentives still available!
• Terms – Interest rates at or near record lows!
• People – We’ll provide such an enjoyable building experience that it can’t be matched!

 

Want to learn more? Call Meghan Heritage today at 616-581-2241 to hear about real estate opportunities that may truly be “once in a lifetime”!      


* See details for terms and limitations.