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Investing in Real Estate during a volatile financial Market.

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Investing in NH Real Estate | 2008 Market Analysis | Investing in VT Real Estate | 2008 Market Analysis
 
Real Estate in
New Hampshire
Counties
Belknap NH
Carroll NH
Cheshire NH
Coos NH
Grafton NH
Hillsborough NH
Merrimack NH
Rockingham NH
Strafford NH
Sullivan NH
 
Real Estate in
Vermont Counties
Addison VT
Bennington VT
Caledonia VT
Chittenden VT
EssexVT VT
Franklin VT
Grand Isle VT
Lamoille VT
Orange VT
Orleans VT
Rutland VT
Washington VT
Windham VT
Windsor VT
 
Real Estate in
Massachusetts
Counties
Barnstable MA
Essex MA
Franklin MA
Middlesex MA
Suffolk MA
Other MA
Worcester MA
 
Real Estate in
Maine Counties
Oxford ME
Washington ME
York ME
Other ME
 

Real Estate is a great place to invest in today's uncertain market. Now is the time to purchase a second home, retirement home, or a primary residence.

Rising oil prices, the Stock Market is falling and financial advisors screaming that you should be more diversified, Wall Street is losing confidence, the value of the dollar is falling, the real estate market is down, interest rates are at all time lows, mutual funds are at risk due to mortgage crisis, and the solutions from democrats and republicans are 180 degrees from one another.

The current market currencies value and mortgage rates at a glance we recommend the Yahoo finance page.

What to do?

Real estate seems like a risky way to go, and it is if you are looking to flip houses, or make short term deals like buying a foreclosure property.
But the reality is the upper end market and second home market, is not only stable but it is growing. There are 2 reasons for this;

One is foreign investors have some great incentives. The Value of the dollar is falling, and the value of their currency is rising, equity is in place from day one for these investors.
Will the dollar continue to fall? By many the answer is yes, some analysts predict up to 25% more before it hits bottom. But it this a bad thing? We will talk more about this below.

Second, Vacation expenses. The cost of going to European countries has risen and will continue to rise as the dollar falls, and energy prices rise. Real estate in vacation destinations is rising in value. The New Hampshire Association of Realtors published a report on housing values from june 06 to june 07 statewide the number of units sold decreased but the value of home in vacation and resort area increased. In Belknap NH County the units sold for homes went down 14% but the average price increased by 9.8%. You can't get that kind of return in the Stock Market! In a comparison of December 06 to December 07 the Belknap County real estate market trends showed a dramatic slow down with median price rising only 0.3% and the total sold dropping 13.6%. The days on market increased to 140 up from 130. This is putting pressure on sellers who need to move fast, creating a buyers market.

Now is a great time to create a self directed real estate IRA account, article on published by realtor.org spells out all the details.

There are 2 views about the falling dollar,good and bad.

The good: If the dollar continues to decline, it makes domestic products more appealing to overseas market, and this will help create more jobs as our goods and services become more competitive with competing European companies. Just think what would happen if consumers thought, Why buy a chinese knock off when original made in USA version is cheaper? Now we have to increase production and that means more jobs. But it will also mean that the high prices for oil will stay, and inflation due to energy coasts will certainly rise. As our trade deficit also falls the other economies around the world will feel the pain as they lose jobs when their manufactures cannot compete with ours. Detroit will be back in the thick of things with increased exports of cars, trucks, farm equipment, and big ticket items like airplanes, will become a great deal compared to the EU market options like Airbus.

If Interest rates rise it would make investing in banks, and other institutions by foreign even more appealing, and retirement funds who rely on interest income will be come more stable, and be able to pay out a better return to the retiring boomers . But high interest rates will make it harder for the average consumer to afford real estate , and would make paying off their debts more difficult. This is why the Fed is still cutting interest rates and it is expected to stay low for a while.

So why buy real estate now? Simple because now is the time to buy low and then sell high, but only buy what will be in demand.
There are 2 types of property that you should consider before you invest in real estate, land or property with existing building. Land will not offer the opportunity to generate income to help pay for the cost of the mortgage, taxes, and upkeep. But, land is low maintenance, and if purchased in a good location will increase in value, even more if location has a limited amount of land available.

Each state is unique as to the opportunity for purchase real estate. Some are more affordable than others, and long term expenses such as taxes, should also be factored in. So at this point we will end this general discussion and break out the opportunities to invest by state and locations in each state. So if you are interested in investing in NH real estate, or if you are investing in VT real estate read more on these pages.

The above article is written as independant observations of the real estate market by the author who is not a real estate agent or a financial advisor, and should not be considered to be advise, or recommendation or endorsement of any action on your part. For specific consultation, you should contact your financial advisor, or one of our Realesearch.com realtors.

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Copyright © 2017 New England Real Estate Network, Inc. All rights reserved. This information is deemed reliable, but not guaranteed. The data relating to real estate displayed on this Site comes in part from the IDX Program of NEREN. The information being provided is for consumers´ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data last updated June 23rd, 2017
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