Investment Value in Today’s Real Estate Market

 

It used to be appreciation… Today it’s defined by income potential and a hedge against inflation. If you have $100,000.00 in the bank making a very small interest rate you probably aren’t very happy. The stock market is most likely too volatile for you so you don’t know what to do other than keep it in the bank.

Now might be the time you might look at real estate. In the Sacramento market prices have been coming down like most other areas in California and they still are coming down but something interesting is happening when as you get closer to $100,000.00 and below. It’s an interesting phenomenon because for all intents and purposes we have hit bottom. Some properties in this price range are getting up bid when listed.

The reason for this strange situation is that investors are coming into the market from all over the country and world and buying investment property. They know that a $100,000 house in Sacramento that can be rented for around $1,200/month returns a lot more than if the money was in the bank and certainly is less volatile than the stock market. They also know that at some point appreciation will return and the picture only gets better.

That is the hedge against inflation part of the equation. If you have your money in the bank, let’s say, and inflation hits you might get more interest but that doesn’t protect much against inflation. If, on the other hand, you have an investment property with a great positive cash flow and inflation hits your picture only gets better… much better!

As a first time home buyer your situation is just as good. When you factor in historically low interest rates you can OWN A HOME cheaper than you can rent and when inflation hits your situation too will only get better.

Real estate is always best looked at from a regional prospective and therefore you should always consult with experts in your local area. This information relates to the local Sacramento market. This information is general in nature and may not be applicable for your local area. This information does not mean that you are guaranteed good results. You still need competent experts guiding you in your real estate transactions. We can help you with all your real estate needs and provide you with legal advice all under one roof and at no cost to you in most cases. Call us today for all your real estate needs or go to one of our websites for more information – www.jclrealty.com/ted-greene or www.upsidedownca.com