Real Estate – Owning a Little Piece of the World
The economy has many people thinking do I rent or do I buy? Homeowners are also wondering if selling might be their best option when it comes to ever changing mortgage rates. So how do you decide? Ultimately it depends on how you view things. Is a home an investment or just a place to hang your hat? Owning a piece of real estate can still be very important to many people.
Yes the economic crisis has made owning real estate a little dicey. Because the property value has declined in many areas it has buyers stalling not wanting to spend their hard earned money on something that won’t make the return later down the road. Let’s face it, owning your own place is supposed to be an investment in your future. Should you sell later you want to get back at least what you put into it. Ultimately you want to get more than what you put into it which is what makes it an investment. No one likes the prospect of making a bad investment.
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Here’s the thing about real estate, it changes quickly. In a few years, once the economic crisis has straightened out, people are going to want to start owning their own places again. They are going to be looking at their rent bills and say “whose pockets am I lining?” Owning your own place will be a good investment once again. You will be able to stand proud and call yourself a homeowner. Ultimately paying a mortgage on a home might even be less than the monthly rent you’re paying now.
This is a problem that is not exclusive to the real estate profession; however, it is definitely worth a discussion. Unfortunately human nature dictates that some people are not as honest as others. Therefore, they will take advantage of other people if it suits them. We are going to talk about the best ways to prevent this from happening to you if this is your profession of choice.
Right now buyers who are interested in getting their own place have an advantage. Real estate is not selling as quickly as it has in the past and sellers might not be getting as many good offers as they would have a few years ago. Once you’re pre-approved for a mortgage you can probably get a really good deal on a home. Some sellers are just trying to walk away from their mortgages and break even. That means they’ll take just what is left owing on the property, not necessarily how much it’s worth. In some cases the bank might be willing to negotiate a short sell of the property in order to get rid of it. It truly is a buyer’s market.
If you are planning to live in an area for a while owning some of the real estate in your area might be the best thing for you. However, if you are only going to be in the area a year or two you might be better off renting. It all ultimately rests on what kind of person you are. Are you interested in owning your own piece of property or are you willing to keep helping someone else to own theirs.