â Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.â
- Franklin D. Roosevelt (FDR) 32nd President of the United States
Whatâ s the safest investment in the world?
When is the best time to buy a house? With so many homes on the market and a sluggish market, now might be one of the best times in recent memory to buy a home. While buyers have the advantage in todayâ s real estate market, they still need to be savvy in order to get the best deal.
Throughout history, there have always been business cycles of recession and recovery which correlate to great real estate markets and soft markets. In other words, the direction of economic activityeventually changes, so now that the market is down, you have to be prepared for the market to recover.Many times in these past cycles, the worldeconomy started to recover well before anyone really realized that the recession was ending. If you keep a watchful eye on the news, even when the statistics show high unemployment and it looks like a vicious downward cycle that will never end, the economy could actually be on its way to recovery.
In Grand Bahama, we are directly influenced by the world economy, and as things get better in the world, investors will return to the island and we will get back on track. I truly believe Grand Bahama has an opportunity to meet its potential even though we sometimes feel that it will never get ahead.If the Government, The Port Authority, and all of the members of the community do their part in being productive and making good decisions, things will turn around.It only takes a small shift to get the magic back in the magic city.
When the world economy begins to rebound, and just a few projects on the drawing board begin such as Sunwing Internationalâ s 5 star all inclusive Blue Diamond Resort with direct flights from Canada (to open in November 2013) we will see a shift. Small steps but in the right direction..
So, here are some things I urge home buyers to keep in mind while the market is soft and it is a buyerâ s market, with a lot of property for sale and good deals all around:
Donâ t Try to Time the Market
When home prices are low, it is very tempting for buyers to wait as long as possible in the hopes that prices will decline even further.This strategy can be detrimental.Once a home is priced to what the current market will bear, buyers will make offers.It is best to make an offer based upon the prices at which similar homes in the market are selling for.In a buyerâ s market, there are more opportunities for negotiations, but making an offer is the right step. If you find a great deal on a house that has great future potential, if you wait too long you might miss the opportunity and the market may climb, or the owner may raise the price. So, now is the time.
Homes Are Selling
Properly priced homes are selling. Although the overall number of real estate transactions in Freeport have decreased, there are still properties selling for realistic market prices. Buyers are getting great deals that they will be proud of in years to come.
Watch the Mortgage Rates
While it is true that mortgage rates have risen over the past few years, the increase has not been so dramatic as to significantly impact a monthly mortgage payment. Be sure to watch the rates and do the math carefully, because changes in mortgage rates are not necessarily cost prohibitive.
Negotiate on the Incentives
Sellers eager to move their homes may offer a variety of incentives such as cars, boats furniture,and other deal sweeteners. Before accepting an incentive, make sure it makes sense.
Seize the Moment
This is one of those moments in history where a savvy investor hasthe opportunity to dovery well in real estate.I wish you all great success in your real estate hunting. There are many skilled BREA (Bahamas Real Estate Association) agents in Grand Bahama who can help make your dreams a reality. So call them, and get your piece of the rock!