Did you see this article in the Kansas City Star yesterday about the Fed’s interest rate policy? It discusses how the return on CDs and dividends on investments and savings accounts have dwindled down to nothing now that the Fed is holding interest rates at zero percent. With few good traditional investment options, many people are beginning to look towards real estate as a place to stash their money.
(Income-Producing Fourplex for Sale in Kansas City, $169,000: View Listing)
This is the one place where low rates actually have a positive effect on the investment. If you have the stomach for property management, I would definitely encourage people to buy investment property in the Kansas City market. Our market is relatively stable, it is at or near the bottom, mortgage interest rates are at rock-bottom (near 4%), and prices are very reasonable. In addition, we have a healthy rental market with strong rental rates. I bought a rental property out of foreclosure, rented it, cleaned it up, and increased the value by 25%. It can be done. If you can find the right property, it is a wise financial move with very little risk.
If you are interested in buying an investment property in the Kansas City market, call me. I know what to look for, and I can help you make money.