The question many people ask is “has the real estate market recovered?”  I think a better question to ask is “should I be buying”? The answer to both questions is yes.

The reason you should still be buying everything you can get your hot little hands on is because real estate is still below replacement cost in many areas. But, even if it is not below replacement cost in your area, the average price right now is still at historically low levels.

On top of these historically low prices, we are also sitting with  the lowest interest rates in history. Yes, I know that rates have moved up a bit in the last few weeks, but they are still at historic lows.

The FED has every reason to continue to give a boost to the economy. One of the best ways they can do this is by keeping rates low. As they keep rates low and continue buying US treasury bonds, this encourages banks to lend and people to borrow. As more money is borrowed for housing, this increases demand and thus prices rise.

With rates where they are today, and housing still at historic lows, buying is exactly what you should be doing. You don’t want to be the person who looks back 10 years from now and says “I coulda, whoulda, shoulda bought property back then”. Don’t be that guy. Go buy something today!

And if you read this blog regularly, you’ll know that I would recommend finding a distressed asset that is undervalued. By doing this, you will be getting “instant equity” from day one, and hopefully greater cash flow. This is like eating your cake and getting the icing for free.

Find a property that cash flows today. You’ll be glad you did!

Happy investing.