Home » News » It is best time to invest in US real estate: 7 reasons

The United States real estate market is at hype now due to the various plans that support investing in property. If a person is thinking of buying a property, this is probably the best time to invest. There have been ups and downs in real estate market, and this down is a profit time for property investors and buyers.

7 Reasons why this is the best time to invest in real estate:

 It’s time for you to know why this year is best to invest in property and get back a good return from it:

  1. Mortgage interest rates are very low

The present mortgage rate is going from 4.2% to 4.6% this year. Economists believe that interest can surge up to 5% next year. So if you invest now, you will save a lot in the long term. Banks are still willing to approve the amount for a proper circulation of money in the financial market before they start holding up capital for real estate.

  1. No foreign investors, as of now

Due to the surge price and house bubble recently, foreign investors are not investing in US real estate for now. Also, USD has a higher value than most of the other countries. This is why expensive properties are not getting sold, and finance of real estate is falling.

  1. Sellers willing to negotiate now

As stated in the above point, circulation of money is not happening very fluently. This is why more houses are for sale than buyers available in the market. Some sellers are in absolute need to get away with their property. With a proper market research, you can now get the best of your choice at a low price, as sellers are willing to negotiate.

  1. Possible upsurge in price next year

Over the years from 2006, house prices have increased almost 20%. From 2014 June, there has been a price drop of 4.3%. Considering the market scenario and the trend pattern of real estate price increment, next year onwards, property rates are likely to increase. Also, housing tax is going low now which has a chance of increasing in the following year.

  1. Increased employment eases paying off down payment

2016 and 2017 has a prospect of 200,000 new job openings in all over the US. This will also be followed with increment in existing salary. This solves the problem of paying down payment or worrying about repaying mortgage interest.

  1. Rented apartments are turning expensive

One needs to understand the rent pattern. Once a house or an apartment is rented, the charge includes mortgage price, house tax and extra profit of the landlord. These sum up to a great amount that needs to be paid along with other expenses. Nationwide, the rent surge this year is 4% and every year the surge can be added to the lease or contract. In a survey, it has been found that 42% of a person’s salary is spent on rent in San Francisco.

  1. Best for long term plan

The best thing about real estate investment is; with time, the property value will increase. It serves as security for future. This one-time investment has no expiry date; hence, you can vouch for your retirement plan on your real estate in the US.

All these are making it the best time for investors and buyers to get hold of the perfect property for them in the United States. Get an agent, do a market research and bargain to get the best property as soon as possible.