New investors worry that the housing market is still too unstable and that there are too many risks involved in investing in property. Experienced investors, on the other hand, recognize that the current housing market climate is actually ideal for property investors. While the economy still has a long way to go and the housing market is far from fully recovered since the decline of 2007, home sales and purchase prices are on a steady increase, creating a perfect opportunity for investors to make relatively low risk, high yield investments in property.
Mortgage rates are currently at an all-time low and the affordability index has never been better. In December, construction crews increase the number of homes they broke ground on by 12.1% over the previous month, bringing the number of new homes being built to the highest level since June 2008 (Reuters). This increase in construction is a direct result of the number of people reentering the housing market, looking for affordable homes that are bigger and better than they would’ve been able to purchase in years past. People are feeling more confident in the economy and in their job security, and are therefore excited to take advantage of the currently low prices available to them in the housing market.
In addition to all this, there are still a large number of foreclosed homes available for purchase throughout California. Property investors are swooping in on these homes, making quick renovations, and reselling them to a demanding public who are willing to pay asking price.
Reduce the Risks by Working with an Experienced Private Money Lender
There are always risks involved in property investment, but the current housing market climate is helping bring those risks down to a minimum. You can further reduce your risks by working with an experienced private money lender like ZINC Financial. Our team has the resources and know-how to help you make smart investment decisions that will help ensure your financial success.
If you’re considering a property investment, find out right now whether or not that investment is worth your time and money by using our Deal Analyzer. This free online tool can help you assess the risks and potential benefits of your investment instantly. With the information you receive, you’ll have a great foundation upon which to move forward with your investment decisions.