We’re perfectly aware that, on any given day, a real estate guru somewhere in this world claims NOW is the perfect time to invest in property. Well, if you compare the cost of renting versus the monthly loan payment to buy a house, today’s guru just might be right. For proof, let’s take a look at Atlanta, which currently has the most favorable values for owning versus renting. If you took out a mortgage to buy a house, assuming you could make the 20% down payment, your cost would be about $539. Compare this to the $840 average asking rate to rent.
That’s more than $300 difference! Do you see opportunity in these numbers? We’ll make it easy for you. Buy a house, then turn around and rent it out. Put that $300 in your pocket or take the family out for dinner at a nice restaurant. This is a perfect storm of real estate investment if we ever saw one, because the forces driving this particular chain of events within the housing market are going to be in play for a while. On one hand, you have a massive and continuing foreclosure crisis fallout shoving house prices ever downward. While it’s true that lending standards have been tightened, for those who qualify, it doesn’t get much better than this.
On the other hand, all these people forced out of their homes by the wave of foreclosures still have to live somewhere. This makes them renters, and they’re going to be forced to pay the going rate or move back in with their parents. Some will pick up the phone and call good old mom and dad, but a good chunk will bite the bullet and write out a check for the rent. Keep in mind that the foreclosure is not a mess in the rear view mirror. It’s still unraveling and will continue to have a heavy hand in real estate investing for years to come.
You can sit on the sidelines if you want. Continue to dabble in the stock market and get your head handed to you periodically, or you could finally make a decision to invest in history’s proven best asset – land. We’re here to tell you that NOW is likely the best time to invest in real estate that’s going to come along in your lifetime.
Are you simply going to watch it pass? We sincerely hope not.
The Heroic Investing Team
Flickr / josh.ev9