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Monday, May 24, 2010

Price, Means and Opportunity - The Ideal Match When Investing in Real Estate

Most investors know it already.   Home buyers should probably consider it as well.  That is, when to pull the trigger and purchase real estate.

There are lots of books out there that will tell you how to calculate ROI (return on investment) or capitalization rates.  I am not an investment adviser, attorney or accountant....just a real estate agent working with buyers and sellers in Brevard County, Florida. 

The decision to purchase a house or condo is a major decision which adds considerable obligations. A common sense approach to the decision to purchase a house or condo involves considering the right factors. [By the way, "want" is not the major factor.]  

Real estate prices are down from the highs of several years ago.  This is in part because the inventory of short sales and REO/foreclosure properties remains high. [When about 25% of all houses and condos on the market in Brevard County, Florida  are distressed properties, prices will be depressed even further.]

A stable employment history (and outlook for continued employment), savings for down payment/closing expenses, the ability to live on a budget are all part of what I consider the "means" to buy a house or condo.

The cost of borrowing (interest rates) has continued its drop and is now at historical lows at about 4.90% , down from 4.99% last week on 30 year fix rate loans.

When all is taken together price, means and opportunity, it makes sense to consider a real estate purchase.

In Brevard County, Florida, if you are ready to make the decision, call me to discuss how I can assist you in the process.

©Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida.

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