8 Reasons to Invest in Real Estate in 2008

1. The Market Is Down
As most of you are probably aware, houses are staying on the market longer. This has pushed the more desperate sellers to drop their prices well below where they were in the recent past. One of the first rules of creating wealth is "Buy Low, Sell High". Many people are afraid of the down market and are sitting on the sidelines, when things are cheaper than they have been for a long time. Your competition to purchase these properties is decreasing every day.

2. Foreclosures Are On The Rise
For a number of reasons, more people are unable to make their mortgage payments and banks are taking them back through foreclosure. Banks do NOT want to have ANY real estate in their portfolio. It drastically decreases the amount of money that they can lend out. In many areas, they are selling these repossessed properties at discounted rates. With families being removed from their homes, rental rates are on the rise. People still have to live somewhere.

3. As A Buyer, You Have More Options
Increasing inventory of houses, with a decrease in potential buyers, means that you have more control in your purchasing process. If one seller isn't willing to work with you, on your terms, there is probably another one down the road that will. You can be extremely picky about the investment that you are making and structure the deal closer to how you want to see it structured.

4. Interest Rates Are Low
This is the first time in history that we have seen a low market together with low interest rates. In the past, a slow economy was greeted with high interest rates. I'm not sure if we will continue to see rates as low as they are now. Why wait to see if interest rates will go up? If you take advantage of them now, then it doesn't matter where they go. Money is cheaper to borrow right now, than has been the case through recent history.

5. Mortgage Brokers Are Working Hard For Your Business
There are fewer transactions taking place in the market, leaving smaller pieces of the pie for each mortgage broker. Competition between mortgage brokers is becoming tougher, resulting in the cream rising to the top, with the ones who were not taking the job seriously leaving the business. The ones who are still around, are more likely to know what they are talking about, and are better equipped to help you get the best terms available.

6. Real Estate Agents Are Working Hard For Your Business
Like mortgage brokers, with fewer transactions taking place in the market, real estate agents are competing more for the business that is out there. The agents who are surviving are the ones providing exceptional customer service to their clients, and the ones who are becoming creative and embracing the changing market. They are more willing to do what it takes to find transactions that work for you.

7. You Have More Education Available To You
In this age of technology, information is readily available, wherever you are. You can easily educate yourself on markets around the globe and make educated decision. Educate yourself or join teams with someone that understands the market and can be creative in changing strategies, based on changing markets.

8. You Live In The United States
The United States is one of the best countries in the world for buying and holding real estate. Mortgage money is readily available to nearly anyone with ok credit and some kind of income, and property ownership rights are well established making real estate a secure investment. A lot of Americans also have investment money set aside for retirement, that can be accessed, tax free, to invest in the leveraging of real estate.

If you have any questions about why I recommend investing in a "struggling" market, I would love to talk to you. Most people buy real estate only thinking about the appreciation that the property will experience. With that mind set, it is no wonder that people call this a down market. There are several other benefits to real estate than appreciation alone. In most markets, properties have stopped depreciating. I'll end by repeating a thought that I said earlier.

"Buy Low, Sell High" Now is the time to do the former.