Here are the reasons in a list of top ten answers from property expert Ashley Church:

1.   Presently, buyers have a wide choice of stock and very little competition.

2.   Building permits dropped 41 percent from 2008 to 2009, after a similar drop from 2007 to 2008.  They are still falling.  A shortage of well-located homes will start to show up late 2009.  Along with new-builds, many of the homes banks are returning to the market (REOs) are located in less desirable far-burbs and exurbs.

3.   Resale prices are often less than replacement costs.  This cannot last too much longer, as the market abhors this type of illogical financial vacuum.  New homes will be more expensive because the time and cost of permits, construction material, and reactivating labor is higher than buying existing stock.  It will take 12 to 18 months to correct once the builders return to the market.

4.   Foreclosures (at double the normal rates) create more demand for well-located, quality rentals.  Rental demand for well-located properties is still strong and a recipe for a future appreciation, says Greg Dawson of GoRenter.com.

5.   Falling interest rates, down payment assistance, and first-time homebuyer incentives have made home ownership more affordable; the best it has been for a long time.  Buyers and investors with a good credit history, a down payment, and a demonstrated ability to make mortgage payments consistently, are able to get FHA financing.

6.   The real estate market has not imploded.  Prices are off an average of 10 percent to 1 percent from their highs in good central and near-burb neighborhoods.  In some cases value has held steady in the face of negative media.  Far-burbs, exurbs, locations that are overbuilt, have an onerous commute, or where owners were sold aggressive loan products, are being punished.  Their underlying economics were based on fragile and unsustainable housing promotion.  The national median house price was down last month.  This is expected to level off and stay flat, beginning to rise in 2010 as the supply of foreclosures is worked through.

7.   Vendors are now very negotiable on price compared with this time a year ago.  They are increasingly aware that they may need to leave some money in their property, in the form of vendor finance, if they want to sell to investor-buyers looking for positive cash flow properties.

8.   Positive cash flow property deals can again be found all over.  Contact me for a shortlist of discounted, cash flow positive properties that meet your investment criteria.

9.   Prices will recover and property values will increase.  The downturn is due to a lack of confidence rather than any change in the property market fundamentals.

10. Real estate is still the best place for most people to invest their money.  Property has doubled in value, on average, every seven to ten years for more than 70 years; there is nothing to suggest that will change.

BONUS:  Real estate is titled, real, can be leveraged with a mortgage, can be refinanced to take out profits tax free, can be depreciated, can earn income and be expensed, if held longer than 366 days, and if you must sell, profits are taxed at capital gains tax rates currently at 1 percent.

Show us another investment that delivers this level of investment, financial and tax efficiency!

Copyright 2007, Wandering Star Software, Inc.