Norada Real Estate Investments

  •  Home 
  • Markets
  • Properties
  • Notes
  • Membership
  • Podcast
  • Learn
  • About
  • Contact

Income Property Investment — But is it a Smart Investment?

September 1, 2009 by Marco Santarelli

There seem to be signs that the real estate housing market is beginning to recover, leading some to think that income property investment is still profitable. In the southern part of the United States, a 7.1% increase in home purchases occurred during the month of June. Several of the federal government's 12 regions, including New York and San Francisco, have been showing signs of returning stability and even California and Florida, the States most devastated by the mortgage crisis, are starting to bottom out. However, not every region is experiencing the same growth.

In general, the western half of the United States has not seen the same recovery rate as the rest of the country, and in places like Minneapolis, the situation might actually be getting worse. Nevertheless, the rising rate of unemployment may be preventing many Americans from feeling the recovery. Overall, the economy grew towards the end of 2008. That gave many people hope for the future. However, unemployment has been growing even faster and may reach 11.2% by February of 2010. With numbers like that, many investors are beginning to wonder if an income property investment would be an acceptable way to augment their finances given the fact that income properties are becoming a catch 22 situation. Many investors don't have enough money to buy investment property, and if they did, they probably wouldn't need to buy them in the first place.

A catch 22 is a very grim assessment, but one that needs to be factored into any discussion about the income property investment or the market's. The sad part about all of this is that no one seems willing to broach the topic of bailouts for the individual. In fact, Congress is steadily trying to cut down the length of time that people can file for unemployment benefits. It would be much more reasonable to work on cutting down the unemployment rate. If that was reduced, then it's reasonable to believe that people wouldn't need to file for unemployment at all.

At this time, the real estate market is deceptive. Mortgage rates are very low, and it's clearly a buyer's market. However, buyers are losing jobs at an astounding rate, and that usually makes it difficult to own a home. The bright side to all of this is that, for the people who already own an income property investment, it is also a landlord's market. Investors may be faring better than almost everyone else in the country right now.

Filed Under: Housing Market, Real Estate Investing Tagged With: Housing Market, income property investment, Investment Property, real estate, Real Estate Investing

About Marco Santarelli

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.  His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate.  He’s also the host of the top-rated podcast – Passive Real Estate Investing.

Comments

  1. Minneapolis REOs says

    September 17, 2009 at 8:35 am

    We can’t always expect that real estate business will be stable forever. That’s why investing on real estate is really a big risk! there’s no assurance that we can sell house anytime – no matter how good our strategy is, if there’s no demand it’s a loss.

    -Minneapolis REOs

  2. Lansing REOs says

    September 18, 2009 at 11:19 am

    yes is it. Even the world is suffering from crisis, if you have a good perspective you can do anything. A good marketing skill is needed in investing on real estate, if you have this, you can still earn, but be wise in choosing a place to invest, because it’s a great factor that affecting real estate. Assess everything. Money matters, you can’t afford to lose hundred bucks.

  3. Property says

    September 19, 2009 at 11:50 pm

    Sounds good for property investors.

Real Estate

Quick Links

Blog Posts

  • US Housing Market Forecast 2021: Will Sales or Prices Crash?
    April 10, 2021Marco Santarelli
  • Denver Real Estate Market: Prices | Trends | Forecast 2021
    April 9, 2021Marco Santarelli
  • Houston Real Estate Market: Prices | Trends | Forecast 2021
    April 9, 2021Marco Santarelli

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
  • Terms of Use
  • |
  • Privacy Policy
  • |
  • Testimonials
  • |
  • Suggestions?
  • |
  • Home

Copyright 2018 Norada Real Estate Investments