Where were you 30 years ago? I bet you have seen a lot of changes over the past 30 years and we have also seen a lot of changes in Raleigh real estate. Today, I thought I would take you back in time to 1981 and then fast forward you to the future of 2011 so you can see the shocking value changes in the affordability and cost of residential real estate. They say- “all things get better with age”, well Raleigh area real estate is no different. Fasten your seat belt we are going back in time 30 years.
30 YEARS BACK TO THE FUTURE 1981 2011
AVERAGE HOME PRICE $82,500 $242,300
AVERAGE MORTGAGE INTEREST RATE 16.63% 4%
AVERAGE MONTHLY PAYMENT (P&I) $1,147 $1093
AVERAGE MONTHLY RENT PAYMENT $315 $1,356
What does this 30 year comparison tell you? Are you shocked by the drastic change or at least a little surprised at how well long term real estate investing has paid off? If anything, these numbers should peak a little more interest into real estate as a viable option for expanding your investment portfolio.
Home Mortgage Payments Lower Now Than 30 Years Ago
Raleigh, Cary and Durham, NC have always been in the top best places in the USA to live, work and buy stable real estate. Everyone is talking about what an unbelievably great time it is to invest in Triangle area real estate. Now looking at the numbers, can you see why? Your monthly mortgage payment is actually lower today than it was 30 years ago and rental rates have quadrupled!
Immediate Cash Flow
In addition, you can buy homes for investment to rent that will give you immediate positive cash flow. In these hard economic times having extra monthly income is always a positive choice.
The future for investing in real estate is bright because rents are on their way up and are
expected to rise more over the next 5 years. What a great way to add gains that double, triple or quadruple to your income too.
IRA & 401K used to Tax Deferred Real Estate Investments
Did you know that many investors are buying real estate in an IRA or 401k because of the high performance they are gaining in real estate? In many cases their real estate investments are significantly out performing their returns on the stocks and bond market the current IRA is invested in.
There are many ways to purchase real estate today so open your eyes to the future. If you bought investment real estate now in the greater Raleigh – Triangle area will where your portfolio be in 30 years?
To learn more about investing in real estate in the greater Raleigh area contact our office at 919-235-0007.