Invest in Real Estate: The Perfect Storm Eau Claire Wisconsin Real Estate

Eau Claire Wisconsin Real Estate Agent

Every so many years the perfect combination of ingredients comes together for the perfect storm. The same holds true for Real Estate, interest rates drop and home sales drop resulting in lower prices. Recently a third ingredient has been added to this mix with the stock market taking quite a hit. While some might argue that investing in stocks is a good idea, I also think it goes with substantial risk. Now every investment poses inherent risk but some are less than others. In the case of Real Estate investing in Eau Claire Wisconsin and the Chippewa Valley you would be hard pressed to find cases in which a long term investment in Real Estate would be a bad idea. Now when you talk short term there of course is a much higher risk but it is a no-brainer that homes in our area have statistically gone up in value over the years. In many cases they have doubled in value in less than 15 years. There is no other investment that I know of that could possibly yield a return like this. Today that would be the equivalent of buying a home priced at $100,000 and in less than 15 years the home is worth $200,000. This is quite possible in our area. How likely will remain to be seen. But even if the trend were to slow down even to 60% of that or less we are talking about an incredible amount of potential income.

When homes were at their peak in pricing, flipping was all the rave. When the costs of materials went up and home prices fell it became rather difficult to turn a profit doing this sort of thing even if you did all the work yourself. In fact many investors are still in hot water after getting in too deep and expecting the same sort of returns.

Well now it seems a new approach is being taken and it is something that I have been saying all along. Buy low and sell high. Thats the same advice for the stock market and it holds true in Real Estate as well. With home prices down as they are if you bought a home today and held onto to it long enough for the market to come around you are looking at a substantial profit in a relatively short period of time. There are a few different ways to approach this and in the mean time using your investment as a rental would be a great idea. In a few years you decide if its worth it to you to stay in the rental market or sell it off later. I think the longer you can hold onto the property the better. I think rentals are a great investment, but like I said every investment comes with risk!

Here is an article for more information.

One thing to note is that the article is talking about a different area than here in the Chippewa Valley. The numbers are not representative of our area. Real Estate is local. But in general terms the information is valid.

If you would like to work with an agent who is leading the way call 715-894-1001 today or send me an email.

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