10 Reasons to Invest in Today’s Market

With all the negative media out there, it’s hard to remember that “all real estate is local,” and that falling prices bring with them real opportunities. It’s true, especially here in Santa Barbara.

Here are 10 reasons to invest in today’s market:

1. Interest Rates are Low. Despite the September up tick in rates, the average 30 year fixed rate mortgage is lower today than it was at this same time last year. Lower home prices and a relatively strong economy have lead to lower rates and cheaper money.

2. Inventory is High. With more properties to choose from, you’re more likely to find the home of your dreams. You also won’t have to compete against 5 other people to buy it!

3. There are Great Deals out There! While our local real estate market remains strong in general, some Sellers do need to sell. Consequently, they have reduced the asking price of their properties dramatically. These situations represent great investment opportunities for the savvy Buyer.

4. Sellers are More Agreeable. Gone are the days when Sellers held all the cards. Today’s Sellers are more likely to work with you as a Buyer and make repairs and/or improvements to the property before the close of escrow. They may even be willing to help you pay down your mortgage!

5. Seller Carry-Backs are Back. Many of today’s Sellers are willing to help you purchase their home by “carrying paper” – i.e., a promissory note, secured by the property. A typical carry-back amount is around 5% of the sales price and carries an interest rate of around 7-8% for a 3-5 year term.

6. You Can’t Time the Bottom. Let’s face it – no one will ever know exactly when we hit bottom. And does that really matter? Instead, focus on finding a property that you like and want to hold onto for 5-10 years, and negotiate the best price possible.

7. You Want to be In the Game When the Market Takes Off. While it may not feel like it right now, our local real estate market will again experience rapid, double-digit appreciation. In fact, statistics show that real estate values in Santa Barbara either double or triple every ten years. You want to own your piece of the rock and be in the game when the rocket takes off!

8. They Ain’t Makin’ Any More Land. As Mark Twain famously said, “Buy land. They aren’t making any more of it.” Especially in Santa Barbara!

9. You Can’t Beat Pride of Ownership. A home is a tangible asset. Studies show that owning a home provides a sense of stability and security that can actually improve your health and well-being.

10. Home Ownership is Still One of the Best Financial Investments You can Make. We all know that home ownership can provide you with several, lucrative tax benefits. But more importantly, it can provide you with a platform from which to build wealth through increased borrowing power. This, in turn, can be used to finance important goals, such as a child’s education or your own retirement.