Investors Switch To Real Estate

August 1, 2008

More investors are switching from stock and bond portfolios to real estate investments. The volatile stock market, experiencing huge dips recently, has less investment appeal, while real estate is viewed by many investors as a highly potential place for their funds. In many cases, the price of properties has lowered and sellers are more open to negotiations. Also, interest rates on mortgage loans have remained low, but are generally rising at this point.

Another key factor: An increasing number of analysts feel we are nearing the bottom of the real estate sales and value cycle, making this a very strategic time to invest. "Investors can run from the risk and hide their head in the sand, or they can face the next phase of the real estate market," said Craig Rozema, a real estate investment consultant and author.

In any market, it’s always important to be careful and prudent in making real estate investments. Don’t respond to high-pressure pitches on radio or television promoting investments, without researching the offer and possibly consulting with a knowledgeable individual you trust, including Realtors who are savvy about factors, trends and property values in the local market.

Posted in Real Estate, Things of Interest