Is it the Right Time to Invest in Property?

Good news or bad news: which do you see?
The state of the economy crunch has affected almost all investments in the country. Most companies are going into bankruptcy as well as liquidation. These are bad news glaring to all. Despite the government various stimulus and bail out, the economy is still drooping. The real estate market is in shambles, the question is-where is the good news?
Property managers:
Property managers, brokers and agens are not having a free lunch, over 50% of investors have declined from investing in real estate, despite the cut in interest rate and reduction in the stamp duty, there are yet to be a signal that the market will be recuperating very soon. This news is actually making investors worry. It is basically said once beaten twice shy. Investing in property is quite risky for a short term investors, this is because it will definitely tie down your funds. The recovery process of the property market is going to be gradual for a long term. Therefore, short term capital gain will almost be difficult.
Declining prices can be good bait or...
The prices of property have fallen drastically, no amount of stimulus funds could remedy the drop in prices except the perception of investors change to the market. But as for the moment the good old perception has disappeared from investors' minds. The wave of jittery outlook to the market would make it difficult to ascertain that the time is right for investment. However, if you are long term investor, you can consider this declined prices as a good bait to invest in property for at the long run, you would not regret.
Financing:
Because of the large volume of cash required to invest in real estate, it is becoming difficult to purchase a home at this period because the mortgage houses as well as finance companies are not lending borrowers money to invest in property. Because of the general trend in the market, the risk of investment is large at the end of the lenders. This is because of the general insecurity in the economy. According to them, it is better to finance short term project that would bring immediate profit than to tie down their own funds.
Another reason why investing in property is not timely is, lenders are requiring a large chunk of down payment from borrowers. They believe that this would protect them in case the person suddenly becomes unemployed. By this the lender can repossess the house and sell it at auction
The good news:
In spite of all these disadvantages, long term investors should look beyond these discouragements and if they can get liable finance they should capitalize on the favorable interest rates and invest.
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Article Source: http://EzineArticles.com/?expert=Lizzy_Alicia_James