Lisa Barton

Now’s the time to buy a new house - real estate is becoming a popular method of investing again. I just read an interesting article in the National Association of Realtors’ newsletter. At this point in the year, stocks are up 50 percent from the March 2009 bottom. According to Michael Murphy, editor of the New World Investor stock newsletter, the only asset class left in the cellar is real estate. Mr. Murphy and other investors are encouraging their clients to purchase real estate as part of their financial portfolio. Here’s the gist of the article:

• Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.
• Little competition. Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.
• Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.