Real estate has always been a popular asset class. Unlike other investment instruments, it is a much more expensive asset to own. Stocks and bonds are instruments that possess much more liquidity and need less initial capital for ownership. Many investors do not purchase a property entirely through cash payment. Much of their investment is financed by some form of debt instrument. Mortgage loans are frequently used to finance investments in real estate. Mortgage leveraging is a common way of investing and obtaining healthy returns on the property market. For investors to make good gains in this asset class, they must be able to stay invested in the long term and also have an above average risk appetite.
Real estate is sourced from any of the following:
* Market listings
* Bank real estate departments, public agencies and other wholesalers
* Real estate agents
* Sales after public auction caused by foreclosures and estate sales
* Private sources
Declines in the market over the past decade has resulted in US housing prices to have bottomed out and reached their nadir. Property prices in some states of the US are the same as they were at the turn of the millennium. Although homeowners find these figures very depressing, it offers new buyers a great opportunity to buy and get invested in the real estate market. Rock bottom prices, low interest rates and supply of a wide variety of homes all over the country has resulted in increased home buying in many parts.
Portland Oregon is an example of a city that has seen soaring sales in homes, as a result of the low prices and availability of cheap finance. Portland Oregon is seen as a healthy place to reside on account of its temperate climate and large number of parks and gardens. The city has been awarded the title of “Greenest City in America” a number of times and is also regarded as one of the ten most eco-friendly cities in the world. It is an ideal place for settling down with a family because of its high quality of living, low crime rates, recreation facilities, education, environment and many other factors.
In the past decade Portland was one of the few US cities that was still observing upward trend in housing prices even when the rest of the country was in the dumps. Some of this enthusiasm has been tempered over the years with an increased supply of real estate in Portland. However, the low prices and low interest rates are attracting hoards of new buyers and investors into this attractive market at current rates.
