In the article I’ll tell you about why it is important to Invest In Real Estate. Are you interested in making a sizeable investment in real estate and worried about the return on investments (ROI)? This question is likely to crop up in the minds of many people in the US who have been making frequent and large investments in real estate. Why should many people be worried at this time and ask the same question? The reason is quite compelling and yet easy to guess.
At this stage let us refurbish our knowledge of the term ‘Real estate’. The term ‘Real estate’ is commonly used in both the developed and developing countries. It is widely used in the US, Canada and Britain.
Real estate refers to a land along with something that is permanently fixed on it —housing apartments, commercial complexes etc. It is also known as ‘Real property’ or ‘Realty’. In legal parlance, the term ‘real estate’ connotes land with fixtures and is different from the word ‘Real property’ that signify ownership rights of the land.
As you may be aware, the stock market is plummeting since a long time. The American stock exchange, NASDAQ (National Association of Securities Dealers Automated Quotations), shows a fall in points. So any person who keeps a track of the changing market scenario in the US will be in doubt as to whether this is the right time to take money out and invest in real estate?
Now if this question is put to an expert stock broker or a professional real estate agent, he or she will give you a long answer. However, the answer may not probably clear your apprehensions. This is because the stock answer that you will receive is to go ahead and make the desired investment. When you ask them the exact reason, they would possibly tell you that when the market is in full swing, you can gain higher prices soon. Also, when the market is taking a downturn, it can be a great opportunity to buy at lower price for a better ROI in the future.
In the recent times, however, the real estate scene has kept on fluctuating. You may recollect that a few years ago, the real estate market, just like the stock market, saw an upswing. When the prices were falling, many people made huge investments in real estate and saw their ROI soaring high. However, in the last few months, there has been a notable collapse and this is causing a negative impact; it can reduce your ROI several times low.
A recent study has revealed that people have cut their spending on household goods and housing by almost 30% since the second quarter of 2008. Most of these people are worried about their income and even the possibility of retrenchment.
Optimists, however, believe that this is a transitory phase and the US economy will look up in the third quarter of 2009. When the stock market is buoyant and share prices skyrocket, it will have a positive impact on the real estate, too. So the right time to make investments in real estate could be after the third quarter of 2009. In addition, the dearth of homes in some states, especially California, can signify the right time to invest.