If you have considered investing in real estate beyond your personal residence, you may wonder if now is a good time to purchase a second property. With the continued growth in our housing market, real estate is an ideal way to grow your investment portfolio. I recently came across an article on MarketWatch, highlights three reasons why now is the best time to invest in real estate.
First, across the nation housing markets are healthier and continuing to improve from the housing crash of 2008. Fewer home owners are in foreclosure, fewer buyers are getting in over their heads, and home prices are increasing. In Santa Clara County for example, median home prices are up 4.7% from a year ago, while the California has seen an increase of 6.1% in median sale prices.
There are also new services and options available to help smaller investors get into the market. Funding for real estate investors has changed, some lenders will now look beyond your personal income, and include the expected income the investment property will produce. There are also companies where you can invest with others in properties, such as RealtyShare and Fundrise.
Investing in real estate is an alternative to higher risk options such as stocks. Compared to low risk investments such as Treasury Bills or Savings Bonds, real estate has a higher appreciation rate. Over the long term, real estate holds its own; with the recovery of our market, alongside updated regulations, owning a second property could be a worthy investment for your portfolio.
Working with a Realtor® who knows how to navigate all the options available, will make for a better experience. We at Haylen Group are here to help you with of your real estate needs! As your agent, we will strive to work together and give you the best support we can. Call Helen Chong at (408) 800-LIST or email at Helen@HaylenGroup.com. You can also visit us at our website for available listings and additional information.