Location, interest rates, market conditions, timing all come into account when buying Real Estate as an investment.

"Buy low - sell high" has always been the goal when buying investments. And buying Real Estate is no different. If you can get in when interest rates are low and just before prices go up - and you have the luxury of waiting until the prices go up before selling - you win. But then, if it was that easy, everybody would do it. Knowing when to get in is the tough part. Often would be investors hold off purchasing because they aren’t sure when prices have peaked or if interest rates will fall and make it an even better buy. This can lead to missed opportunities.

In 1971 when I started in the Real Estate business the average house cost in my home town was about $19,000.00 . Prices climbed quickly and in 1974 the average house was just over the $40,000.00 The government at the time panicked because prices where souring out of control and brought in a Speculation tax. Anyone buying Real Estate as an investment were taxed 50% of the profit. Investors stopped buying, because wanted nothing to do with paying that kind of tax. As a result the market slowed to a crawl and prices actually fell and in some cases, people sold for a loss, something I thought I would never see.

Slowly the market improved, the Government dropped the tax and things moved slowly along. In the early 80's interest rates went from the 10% range to as high as 20%. People where loosing there homes because payments were too high to handle and prices took another slump. By the mid 80's the prices slowly climbed until the late 80’s when prices went crazy again. In what seemed to be only days, property values doubled and showing no sign of slowing down. Investors started buying and looking to get rich over night and again, over night it seemed the market stopped. This couldn't have been predicted. Prices in the early 90’s dropped to half of what they were just a couple of years earlier. People who weren't ready to ride this one out were selling again and taking a loss. But here we are in 2005, and Real Estate prices are almost double what they were at the peak in 1989. Prices have fluxuated, as have inrterest rates, but overall Real Estate has proven it's a survivor and a very sound "long term investment." Short term can be tricky but for the long haul you can’t beat it. Keep in mind - "You can’t win if you’re not in the game." Present market conditions indicate this is a good time to buy. Lock in those long-term interest rates ( while they remain low ) - do your homework, pick the right property and get in the game! In my 35 years of being in the Real Estate business I've seen the average residential property in my home town go from $19,000.00 to $225,00.00.