People are starting to feel like they missed the train, in some aspects – they might have, we’re now looking in the rear mirror on the bottom of the low of the market in 2009.
If you’re thinking of buying a house to hold (i.e. to rent it out) , you should know that your calculation should consider if the amount you’ll get in monthly or yearly is worth it? Even if the prices go up. In other words, you need to know what is the Return-on-investment (ROI) you want to get out of it? If in low of the market (i.e. when the house prices hit rock bottom) the ROI was 10-15%, now you might only have net ROI of 7-8%. House prices are rising and rent prices are rising as well, however, they increase in house prices doesn’t fully correlate in the increase in rent prices, therefore your ROI can be lower. The take home message – before you buy a house to hold – ask yourself and calculate – is it still worth it to you and make sure the ROI is still applicable to you and your financial situation before going into this transaction.