You may sometimes think that if you could just go back in time with what you know now, you could be rich from having taken advantage of what turned out to be great opportunities. Getting some Microsoft stock early on, buying a Jackson Pollack painting, purchasing a Brooklyn brownstone, and countless other opportunities could have had you sitting pretty today.
Instead of playing the “what if” game, you may actually have the opportunity right now to get in on one of these purchases that will go up and up in value later on.
Real estate in the United States is now revving up for the start of a recovery period. The median home value increased over 17% in just a three-month period. That’s a really big increase in a short period, so it foretells the possibility of prices continuing to rise. (Obligatory disclaimer: no one ever knows with certainty what is going to happen; what we can do, though, is look at indicators and make forecasts based on historic market behavior.)
Interest rates are very low right now too, so this combination may mean that the real estate market is due to heat up quickly, and those who have the foresight to get in now will reap the best profits. The more jittery investors who wait to be assured of certainty will likely miss the best part of the property value increases and just see modest returns at best.
There are plenty of areas too that are offering home grants for both investors and owner/occupants. The home grants come in a number of forms. One type is down payment assistance. Another kind of home grant is help with renovations. For investors, there are often incentives to rehab in areas that need revitalization and/or to create housing for low-income or special-needs tenants. There are all kinds of home grants, and which ones are available depends largely upon the area that the housing is in.
Another form of home grant can be subsidized or deferred interest rates on loans to develop property. Communities that are facing housing shortages want to encourage increases in housing availability, and this is an incentive. The reason that this is considered a home grant is that below-market interest rates or a grace period before repayment is funded by government subsidies.
Alternatively, it may be the case that you’re already in a home (or have a real estate portfolio) that saw values drop in the past couple of years. Your best strategy might be to just sit tight and let the market do its thing, especially if you’re in a desirable area, or one that’s poised for growth. As real estate investors and home owners know, location is key in determining property values. But beyond being in a good location, you may be able to further increase the value of your home or properties by using home grants to renovate and upgrade, and improve energy efficiency. My own students have been able to secure funding for this purpose after learning where to find the home grants.
The bottom line is that you have a lot of opportunities available to you right now, and this may be the time that you’ll look back on either happily or regretfully, depending upon whether you take advantage of the favorable market and the plentiful home grants that are there for the taking at this moment.