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现在是不是买投资房的时候?(2020年12月31日 更新)

(2017-07-04 10:21:05) 下一个

Is it the time to invest in a rental property?  Before answering the question, you need to ask yourself two questions.

1. Will the rental property have a positive cash flow or breakeven?

2. Does your new rental property in an area have an appreciation potential?  

If you have YES for both questions, it is a buy!  But actually, the answer is not that simple.  You need to look at your area of population growth, job market, school, etc.  I would consider the first buying question more than the second one.  As long as the property is situated in a stable real estate area, the positive cash flow is more important than the increasing price of property prices since you are buying a property for investment, not flipping.  I will not worry about the price based on what so called expert saying.  

Before COVID-19, it was a buyer’s market.  The reason being is for the past 10 years, we had enjoyed the low mortgage rates fueled by Federal Reserve Bank interest rate policy.  As the economy recovers from the 2008 financial crisis, under the Trump administration’s pro-business policy, we had seen our GDP growing at around 3% annually.  With a strong economy, Federal Reserve Bank had been raising the interest rate for the past two years before 2020, which translated to higher mortgage rates.  That was why we were seeing housing transactions coming down in some areas in the US due to higher mortgage rates.  

When COVID-19 struck at the beginning of 2020, US Federal Reserve Bank immediately lowered the interest rate to help stabalizing the economy and congress passed CARES act to help millions Americans affected by the lock downs.  All these monetary and fiscal policies have brought down the mortgage rates to historical new low with 30yr fixed below 3%.  The low mortgage rates and stilumus money fuel home buying and refinancing activities and quickly the real estate market becomes a sellers market with multiple offers and price bidding up.  One more factor of sellers market is that people are seeking bigger space to work from home by moving from cities to suburbs because of the lock downs.

 

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hhtt 回复 悄悄话 回复 'sefree28' 的评论 : 联邦利率下来,对房贷利率有影响,房贷利率也会下来。理论上讲,应该对房市有好处,房贷利率下调,房贷的开销下降,对买房的人有好处。但是,因为房价在2010年往上走,因为房贷低利率的作用。房价在相对一个高的点,Affordability是个问题。所以房市有些拉锯情况。交易也有些少了。
sefree28 回复 悄悄话 这周联邦又调低了利率,对短期的房市是否有正面的影响呢?
hhtt 回复 悄悄话 回复 'hz82000' 的评论 : 谢谢hz姐姐来访,因为美国联邦十年的债券的利率在跌,最近的房贷利率是一路往下,对要买房的人们是好事。但是从经济的角度,这有些不正常,应该和贸易战有关。
hz82000 回复 悄悄话 Rate is so good now!
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