May 16 Inflation rates say now is the time to invest in Broward County real estate
by: Christine - View Profile
Here at Best Homes in Broward, we have talked before about how now is the time to buy investment property in Broward County. I wanted to get a little more specific with you as to why today is the day to get involved in investing in real estate. Let’s look at the CPI and how the federal reserve influences it. I know this might be a little more in depth but hang in there with me. You will understand it all when I am done. The CPI, Consumer Price Index, is a way to measure how a particular item is selling and puts it on a scale to measure by. So if the CPI goes up, then you know that that particular area of merchandise, real estate for instance, has been affected by inflation. So when the Federal Reserve noted again that they were not going to raise interest rates, but were cautious with inflation notes, the CPI went up slightly. All that means is that if inflation does not level out, then the CPI will increase and the Federal Reserve will raise interest rates to accommodate the rise in inflation. So what does all that hullabaloo mean to us, the average Joe? Mainly that right now is the best time to buy investment property in Broward County due to interest rates staying low. They will probably rise again soon to keep up with the rise in inflation. So what exactly does inflation do for us? Well let’s look at the inflation calculator to see what our money was like in 1980. If you had invested $100 in real estate in 1980, that money would be worth $250.83 today. So If you bought a home worth $75,000 in 1980, your home would be worth $188,124.39 today. Now that is some equity. But what about more recently? If you bought a home in Broward County in 2005 for $300,000, then your home would be worth $317,000 today. So now is the right time to buy real estate investment property since your home will only go up in value. This is if you do nothing to improve your home. Restoring an old home or redoing just the bathroom can increase your home’s value even more. So just jump in while the investment waters are still good! You will be more than glad you did. Related PostsTo rent or buy real estate? That is the question...What's up with all this talk about location in the Real Estate world? What really makes Christine Adler the Realtor tick Christine Adler South Florida's Top Professional Real Estate Agent Broward County's Weston is the epitome of luxury real estate 
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Comment from: Daniel [Visitor]  Is this realy the only factor in what influences the costs and value of South Florida real estate? It sounds like a typical lie of ommission.  Permalink 2007-05-26 @ 12.22:11 pmComment from: Christine ADLER [Member]  It isn't the only factor but it definitely is a huge one. Finance is complex and how they work the intrest rates can sometimes make no sense whatsoever. But we are at their mercy. Permalink 2007-08-21 @ 2.34:52 pmComment on this article This post has no feedback awaiting moderation... |
