Rates are the lowest they've been in 50 years

If you are waiting for the rates to go lower....it may or may not happen.  I am refinancing one of my rentals from 7% to 5%, that makes a $200 per month change (lower, yeah!!)  Now we will break even on that rental.  This is a great time to invest in rentals!!
  • September 16 2011 - Everett
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Answers (10)

Profile picture for blue screen exile
I really don't think I would want to take investment advice from someone that has been losing money on their investments and has only started to "break even".

Sure, it may be a "great time to invest in rentals" for someone that enjoys not making any money on their investments and has a history of losing money on investments....

But I don't know many other people that would think that investment advice was worth anything.
  • September 17 2011
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Profile picture for Dunes....
"this is not a great market to "flip" homes in but buying and holding for a few years is a great investment!"

Something said/suggested/pushed by many many Agents in 2007/08/09/10 along with take advantage of the Tax Credit and the then never been lower rates of 6.5%..6%..5.9%..5.8% 5.5%..going to go up any day now and the daily announcements of the Bottom....

Result..The main "Flipper" is the Banks/Gov. and many many consumers not Breaking Even. Main Agent Response to that happening......."Well we don't have a Crystal Ball"

Small comfort to many who listened to and followed the "Expertise" of so many self-proclaimed "Experts" about the Time to Buy, the reasons to buy and you should listen to them because...And if many Agents think the Public hasn't noticed that or those who suffered because of it have forgotten, aren't talking... Then IMO many Agents aren't listening
  • September 17 2011
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Profile picture for hud_va
If you like the rate take it, and give yourself some piece of mind and go on in life and worrie about something else.
  • September 17 2011
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Profile picture for the_country_hick
Rates being at an all time low make it a great time to refinance.

Rates being at an all time low do not make it a good time to buy.

Once rates increase buying power will drop and the house prices will be forced lower unless incomes increase a lot. Just going from 5% to 7% removes 23.7% of buying power. It appears higher interest rates make for a safer investment.
  • September 16 2011
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Profile picture for karlaw
I don't believe we've seen enough stability in most markets to put out a "buy" alert at this time, regardless of interest rates.
  • September 16 2011
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Yeah, we bought at the market high, thankfully we haven't had to sell them. I applaud you for doing so well...that's how it can be done in a market like we have right now.  That's why I'm encouraging buyers or investors to purchase homes now.  Thanks for you input Roberto.
  • September 16 2011
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You buy rentals that just break even? how sad for you! That sounds honestly like the stupidest investment strategy I've ever heard of! A major repair, or a vacancy, and you are losing money!

 I bought rentals in the late 90's in Phoenix with 30% of the rent being profit each month, even with 7.5% rates back then...

Today, I am buying homes for 100K that rent for over $1000 a month... I make $400 to $500 a month in profit.
  • September 16 2011
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Y
ou can buy now and rent the home out for close to what the payment is- this is not a great market to "flip" homes in but buying and holding for a few years is a great investment!

  • September 16 2011
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Profile picture for Dunes....
"Now we will break even on that rental.  This is a great time to invest in rentals!!"


This would make a Great Bumper Sticker or Poster for the Office 
  • September 16 2011
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Profile picture for wetdawgs
Nice interest rates, certainly - but what happens if prices drop another 20%?
  • September 16 2011
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