Real Estate Investing 2009
05/24/2009 - By Brian Jarrett 
Real Estate Investing 2009
Five reasons why now is the time to be serious about your Real Estate Investing. Rock-bottom home prices, mortgage rates, and a falling dollar are providing a once in a lifetime opportunity for real estate investors.
We are about to reach the moment in truth for Real Estate Investing. Like it or not, the perfect storm on Wall Street will most likely have a lasting effect on the dollar. The falling dollar, combined with today’s bargains in Real Estate market and record low mortgage rates has created a once in a lifetime window of opportunity for Real Estate Investing. Those that are able to take advantage of the current economic debacle will set themselves up for long term wealth.
Five reasons for Real Estate Investing NOW:
• The Dollar is still Relatively Strong: That is in spite of its 3 month decline of 11%. The Dollar Index (DXY) has gone from a high of 89.49 in Feb-2009 to its May-2009 close of 80.04. That decline is bad enough on its own, but it most likely has a long way to go. However, it is still 11% higher than its 52 week low of 71.87! The unwinding of the stock market created an extraordinarily strong dollar. China is shifting their investments from the dollar to gold. Global investors are becoming much more uncomfortable with the unprecedented Government spending that is taking place.
• Bargain Priced Real Estate: There are some unbelievable deals out there right now. But as prices reach record lows, competition is becoming much stronger. This is especially true in higher demand areas. Real Estate Investors that have cash are making a killing. For those without much cash, but who can qualify for mortgages are still doing extremely well. With the introduction of the Public Private Investment Program, the “bottom” of the Real Estate market should follow soon.
• Record low Mortgage Rates: 30 year fixed rate mortgages are at an unbelievable 4.8% right now. You’d better bet that they only have one direction to go. The Fed rate at 0.25% is helping buoy the markets and banks. But the bigger question is how long can the Fed afford to loan money for free to the banks? As inflation takes a toll, this will definitely reverse course. Banks are already charging more in Credit Card interest rates, sometimes doubling APRs - even for borrowers with high credit scores. They simply cite “the current economic challenges”.
• Return of Cash Flow Properties: They’re back! It wasn’t long ago that Real Estate Investors were happy to accept negative cash flow in exchange for unbelievable appreciation. That was when a $200K house in California near the beginning of the housing boom was seeing $10K per month appreciation – month after month. Since then, reality has given a serious case of whiplash. But the good news is you can now actually generate positive cash flow on your properties.
• Rent goes up with Inflation: By buying properties while the variables above are on your side, you will see tremendous long term growth in your assets. You are buying a property at rock-bottom prices with currency and mortgage rates on your side. When inflation kicks in, rents increase while your mortgage payment is fixed.
The bottom line is that for investors who have the ability to take advantage of the current market, it truly is a once in a lifetime opportunity. Before you know it, variables change such as higher interest rates and inflation. Investors that try to time the housing market bottom perfectly may miss the boat on low interest rates and a relatively strong dollar.
To your Success!
Brian Jarrett
Founder REIquest.com
