Morgan Stanley recently published a survey of millionaire investors, in which they identified real estate as the top alternative-asset class to own this year (Bloomberg). Investors are looking at the rebounding real estate market as other investments have become overpriced.
The survey is important not just to millionaire investors, but also standard home buyers. It is important to understand the market, which is always changing.
Interest Rates Are Still Low
Why are wealthy investors keen on real estate? Despite increasing prices, interest rates remain low, making locking in a purchase now very attractive for long-term investments.
One interviewee said, “This may be the tail-end of attractive investments in property before interest rates rise.”
What Do Low Interest Rates and Increasing Prices Mean for Home Buyers?
Even if you are buying the home for yourself, you should think of yourself as an investor. If you can get a good deal on a home in an appreciating market, while also securing a low interest rate, many factors are in your favor when it comes to long term wealth building.
However, due to these factors, houses on the market are tending to move quickly. This means you may need to act decisively, quickly, and have a great team of people helping you understand your financial and housing options.
To understand how to get started, you can ready this post on how to find a home in the most effective way, which begins with talking to a lender and then discusses factors to consider when choosing a real estate professional: how to effectively buy a home in Colorado.
Early 2014 in Greeley does indeed appear to be a fantastic time to buy a home and capture good prices at low interest rates. If you are currently renting, you may also want to read information on the rental market to help you determine if purchasing a home would make you better off.
We are here to help you with developing your understanding of the market and to find the best home for you. You can contact us at (970) 573-6441 or [email protected] with any questions you may have.