should i buy house now for investment ?

Question

hi,

i am asking this for a good friend. he need some advise thanks


i am bit confused. need some advise.

i guess mine credit score is good, around 690 , mine highest credit card limit is us20,000 for citibank. i have cash 40k in bank. have a job.no debt, no bad report .

i have seen a house, selling price is around 250k. and i am thinking to buy that house and then rent it out to cover the monthly payment then try to sell it after 3-4 years .do u think this plan will work?

will i earn money after 3-4 years? i heard some said now is the time to invest on property but i also heard some ppl said now is bubble, house price will drop and the rate will double....

thanks for any advise.


mike

mine friend is in orlando, florida and the house is also located there.

Answer 1

I would advise additional research specific to the market and neighborhood. Check http://www.realtor.com and other sites for market conditions specific to the neighborhood. I would consider 3-4 years to be a short-term investment as it pertains to real estate.

Real estate is a great long-term investment, and has served me well over the years. It all depends upon on your investment strategy. Over the long term, you will typically do well. However, there will be ups and downs in the market throughout the years.

When you purchase the house, you do have some control over planning and financing. In this example, the payment will likely be somewhere between $1700 and $2200 per month, depending upon interest rates. If you can get appropriate sustainable rent to cover the payments, you will be building equity as long as the market remains constant or goes up. If rents also go up in the future (which is always likely), it is possible increase your profits as well.

Answer 2

1-you should not see a house as an investment unless it gives you revenue. example your payment with tax and expenses is $2000 and you rent it for 2500. if it does not provide cash into your pocket it's a liability.
2-I sugest educating yourself about stocks and waiting untill housing market stabilizes then you buy the house, because now you might buy at 250k and next year might be worth 200k.

Answer 3

there are such diverse investment to be waiting to get. yet procuring a house is between the severe and massive investment now. you will desire to spend some time and your plan additionally. significant to have a plan to purchase a house with a reliable plan considering the fact which you will prevail in case you have your reliable plan.

Answer 4

do it now..you can offer a desperate agent anything it is a buyers market. The agents are soo greedy from the housing boom last year now they are hurting. Suze Orman on CNN SAID THIS WAS GOOD ADVICE