A great article from Realty Times puts the entire “housing meltdown” and potential coming recession into perspective: bargain prices + low interest rates = good buying opportunities.
“If you are a potential buyer or investor, a good case can be made that the current combination of house prices at 4-year lows — and 30-year mortgage rates at 5.6 percent and 15-year loans at 5.1 percent — should have you riveted on what’s available in your local market.”
Certainly as a landlord, low prices, low vacancy and low interest rates make a compelling case for buying up properties and renting them. Inflation also tends to push up rental prices, which benefits those with fixed rate, low interest loans (although hurts the multi-unit landlord who pays for utilities because of increasing energy prices).
The bottom line is that bad markets always present buying opportunities for those who are looking. “The time to buy is when the blood is running in the streets” says Lord Baron Rothschild.
