by Sherri Trevino

Created on: February 04, 2009   Last Updated: April 16, 2011

The big question on everyone's mind is whether or not buying a home right now is a good idea or a bad idea. People are scared to make that move. But if you are smart, credit worthy, have stable employment, and money for a down payment, this is definitely the time to buy!

It is true that today's Real Estate market has had devastating effects on a lot of people. Foreclosures are ruling the market now. The reduced prices of all the foreclosures have brought down the value of our homes.

So many people have lost their homes due to poor lending practices in the past. At one time if you could fog a glass, you could get a loan. However, times have changed. A lot of lenders have closed their doors. The remaining lenders have much stricter policies, and getting a loan is not as easy as it once was. 100% loans are virtually gone by the wayside. Bigger down payments are being required.

People view the state of the market, and are now afraid to invest in Real Estate. Admittedly, it is a bad time to try to sell. Sellers find their homes on the market for a very long time, since housing inventory is up. They are taking losses in order to sell. However, if you have good credit, and are capable of getting a loan, there could not be a better time to buy than right now. There are great deals out there just waiting for someone to snatch them up. It is definitely a buyer's market.

If you are an investor wanting to flip your house, you may want to seriously consider your risk. You must consider how long it may take to sell the property, and ask yourself if you can afford to hold onto it that long. For every month it stays on the market you are still responsible for that payment. There are two sides to this coin, to buy now is great, but to sell now is much harder. So, if your budget calls for a 30 day flip, you better be offering an awesome deal for a perspective buyer. If time is not a factor to you, then by all means, invest now.

On the upswing, if you are an investor wanting to manage rental property, this is your time. Rentals are up. All of these displaced families need somewhere to go. Also, since getting loans are more difficult these days, more people have to rent rather than buy. You should have no problem keeping your property rented out.

Here is a word of advice, though. Be very cautious with rentals. Be sure to check references and credit on your applicants. Try to make sure you are getting quality renters. By quality renters, I mean people who will respect the property and not destroy it, and people who will pay their rent in a timely manner. If you get a renter that does not pay their rent, it takes some time to do an eviction. During this time, they are living in your property rent free, and you still have to make your payments. This can cause a financial downfall if you are not prepared for it.

Home buyers that will be owner/occupants should not be afraid to buy now. The time is right for them to buy while housing prices are down. When the market does turn, their equity will grow and they will be happy that they made the investment during these times.

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