Why Now is a Smart Time to Buy Real Estate

The Wall Street Journal recently stated that buyers should take control of the current buyers’ market and flex their muscles by making the most of the power of their dollars. Not only is this good advice for first-timers, it is also good advice for investors. The advice is solid, but not revolutionary. Buyers’ markets have always offered these kinds of opportunities for those who are properly prepared to act. Smart first-timers will realize that what they buy is a place to live and not merely an investment. Lenders want buyers to minimize their gross monthly income dedicated to mortgage, taxes, etc. Buyers should not plan on stretching beyond 28-42% because lenders won’t approve the loan. Investors are going to need a strong debt coverage ratio of 1.25. Buyers should be in it for the long haul and expect to hold the property for 5-7 years. Buying now, is smart because interest rates are continuing to rise. Foreclosures offer particularly good opportunities to buy undervalued properties. Foreclosures are abundant and so are Short Sales. For details on available properties call 714-264-5964.