If you are looking to purchase a home or some real estate to diversify your holdings, then this may well be the perfect time for the same. There are various reasons as to why you would want to invest in real estate, stemming from wanting to develop the property and upsell it later to building a home for yourself. The reasons could vary and some of the compelling ones are listed below, and you may want to check them out,
- Low-interest rates: Whether you are looking to invest in real estate or looking to purchase a property, this would be the apt time for the same. At the moment, interest rates are quite low, thereby making any investment in real estate all the more attractive. For example, if you opted for a home loan or a loan to purchase a real estate, then you should know that a 30-year loan average around 3.79% as far as the interest rate goes. It could hit 4.5% but the median would range from 4.15% to 4.25% on the loan for the duration. Just check out some of the homes for sale in Auckland and you will be able to get a better idea as to what’s on offer.
- The perfect medium to invest in: It should be pointed out that despite the mortgage crisis in the US market, as far as the Australian and New Zealand markets are concerned, real estate properties have been a safe bet to invest in. Moreover, real estate properties have seen an annual jump in their asset valuation by 8% per annum and that’s despite any economic slowdown or any global cues. This is also the perfect period to purchase a home and that is all the more reason for you to start searching online for 2 bedroom homes for sale ads.
- Growth: It is a fact that home prices are bound to shoot up. At the moment, they have hit the bottom and are bound to shoot up, real fast. Given that the real estate market is primed for a sharp increase anytime soon, it would be an apt time to invest in the same. If you are looking for an investment opportunity or just want to purchase a real estate property for further development, then this would be the right time for it. Given the increase in the current population and the ever-growing demand for housing, it is expected that real estate prices would increase exponentially by 10% and more in the near future.
- High rent: One more reason that you would want to purchase a real estate property is that rents are quite high. You will find that the rents can be quite astronomical especially in cities such as Auckland, Christchurch and that is why purchasing a real estate property could help you save money in the long run. Let me put it this way, by investing in real estate, you would essentially be investing in yourself. Moreover, given the current and expected growth of the real estate market, you can upsell your property for a healthy profit or develop it further and rent it out. Or you would build yourself a nice home, and you would not have to pay large rents for small spaces any longer. This is yet another factor that you would want to take into account as you mull over investing in real estate properties.
These are the essential reasons as to why you should consider investing in real estate at the moment. Moreover, with the economy looking up, and with other metrics checking out, you would want to make a sound investment. Given the fact that population numbers are on the rise and the employment and inflation data are improving as well, it is but a matter of time before real estate prices jump. And you would want to take advantage of the same when that happens, especially if you are looking for short term gains. Or you could consider developing the property further and either upsell it or rent it out – the choice is yours.