Today I’m going to pose the question: Should you be invested in real estate?
Bob Nelson, Eugene real estate investment broker
Bob Nelson: Let me continue on with the subject I’ve been touching on for the last four evenings. It’s interesting, in that there is a lot of trepidation. Should I be investing in real estate? And certainly, if everything goes sideways in a handcart, the stock market is a function of confidence.
And boy, if the confidence goes away… I’m not suggesting there’ll be a crash in the stock market, but if you’ve got all of your eggs in one basket, and you have no control whatsoever over that basket, good luck to you. So for those that don’t like to be in that position and want to have a more… a larger role in steering the ship, income producing properties is very attractive to some, not all. There’s a whole bunch of people that shouldn’t be in real estate.
Bob Nelson: There’s a whole bunch of people who shouldn’t be in the stock market. Fortunately, there’s enough room for everybody in the tub. Not a problem.
So as we continue on, what are some of the positives that exist in the market? One huge, gigantic positive is the low, low, low interest rates. Long-term interest rates that are available on the acquisition of real estate, not just the personal residences that Marcia deals with, but also the income properties that I deal with. Office buildings, many storage, medical, apartments, that sort of thing… The stuff that I tend to gravitate toward and the low, low, low interest rates are fantastic.
And you can get long-term fixed interest rates. So, if all of a sudden things start to skyrocket a year from now, and interest rates start going up like crazy, you still have that low interest rate for the term of your loan.
Bob Nelson: Now, with income properties, it’s typically a 10 year term. So, that typically exceeds the time period of which you would probably hold the thing anyway, so you’re in great shape. The entirety of the financial risk has been pushed off down the road and is not your problem. And that’s a huge item that you would potentially face. So again, very, very, very positive. Income properties today financed at a low interest rate is still an outstanding opportunity.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.