I wish I had a crystalball and I was able to predict the future...Unfortunately, I don't have one so I need to rely on the experts for more professional information...:-)
Just watched a CNN/Money interview with Mark Zandi, Chief Economist of Moody's Analytics, a very well respected global research firm( http://www.moodys.com/). According to Zandi, house prices in the US show a slight increase in prices these last 2010 months as well as interest rates but he foresees also a decline of 5% in prices in 2011 as a result of upcoming foreclosures.
His advice- every location is different so check the numbers and trends locally.
So what I see in AZ which is MY area of expertise: investors are getting very active (the houses we have posted sell very fast), the rental market is getting stronger (more foreclosures mean more renters and climbing rent prices) and if you purchase in a newer development with good schools and in a non-crime area you will see good appreciation in a few years time.
If you buy cheap you might see a bit of a higher cashflow now but your tenants could be questionable and the property's future appreciation way lower.
In a later interview today on CNN/Money it was predicted that throughout 2011 the US currency will remain weak as opposed to stronger curriencies. This might be another reason to invest in the US if you live in a stronger currency country.
Prices in the US always go up starting in spring. If you have money available right now, don't postpone your purchase. This is the time to buy and still enjoy the low prices, low loans interest and high rents!
Happy 2011!
Naomi.
naomiesal@gmail.com
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