Real Estate Market Looking Up Despite Doomsayers
By Justin Anderson, Real Estate Broker, AORE
Everywhere I go I am hearing investor’s predicting imminent doom in the real estate market. “It’s going to happen right after the election – the market is going to bust!”
I say hogwash!
I believe most of those doomsayers are simply in too much of a hurry, hoping to capture something they missed in the last market downturn. I would argue that right now is the best time of anytime you have left in your life to get in this game!
First, interest rates are at all time lows, and there is no real sign of inflation on the horizon. Whatever the interest rate you are seeing advertised, or that you are personally getting on loans, you may as well just cross out that number and write “Free!”
The interest rates available in the market today are as low as you will see them and the Federal Reserve has already stated in their effort to display “transparency” that they will only raise rates a maximum of three times each year during the next two years. That means this money we can borrow will essentially be free until the end of 2018.
Second, these low rates are causing banks to lend very slowly. There is little incentive for banks to loan more money than they need to when there is so little profit to be made at today’s rates. It is possible as rates rise back to “more normal” levels in the coming years, banks will find greater incentive to loan out the historically high excess reserves they are currently holding and we will see the market heat up, not slow down.
Third, time is not on our side. Waiting another year, another five years or 10 years to start investing is devastating to the long-term creation of your wealth and your freedom. Whatever you are waiting for – stop waiting! Now is the time to take action.
After 18 years in real estate, there remains significantly more information that I don’t know than all the information that I do know. If I waited to get started until I knew everything, I would still be waiting.
Get started now!
Want to know more about why now is the time to start investing in real estate? Join us at the next AORE Smart Session – where a local successful investor will share their story of how they have built their real estate investment business right here in Augusta. Our next Smart Session will be on Sept. 10 at the Savannah Rapids Pavilion. The doors open at 8 a.m. for coffee and networking. The Smart Session will begin at 8:30 a.m.
Justin Anderson is a licensed Real Estate Broker in Georgia and Oklahoma, and has been a full time real estate investor for the past 18 years. He is the co-founder of AORE, a Real Estate Investment Training and Education Company with offices in Augusta, Oklahoma City and Philadelphia. For more information, visit AORE.com or email firstname.lastname@example.org.