Saturday, December 06, 2008

Buy to rent could be a profitable investment right now.

If there was a moment in which it was convenient investing in Real Estate this is it.
We will have a good inflation, since the State will borrow more and more to rescue the economy, but for this reason (the reason it is the State who is the borrower) we can be sure that the interest rates won't grow.
On the contrary of what one could think, (just for mathematical reasons) that a high inflation would bring high interest rates, we will see the opposite.
And what is going to happen to the hardly saved money?
Not only that it will bring home nothing, but on the nothing's sake it will also loose its value.
In this disastrous situation, I myself, do not see any better investment that in a home.
It could bring a good ROI either as a saving of the rent or as the income from renting it and you can bet that after a period of high inflation, you will keep the value of the money invested in it.
To that you can add the fact that most people want to get rid of their homes fearing to loose the money they invested and the subsequent fall of the houses' price, and the result is: buy and you'll be soon happy you did.
The only restriction could be buying in a place where you are sure the demand will grow in the near future.
For example, what proposed by Austin Real Estate, that is Round rock tx homes for sale, in my opinion could be the right choice.
"Round Rock, 20 miles north of Austin, is one of the fastest growing cities in the country."
This itself would be the right reason to invest there, but you can add to it the fact that it is also a touristic place and has numerous family style amenities of the area.
You could think of a seasonal renting use of your property.
That means more opportunities to make a good profit out of your investment

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