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Income property investors are wondering if now is the right time to buy. It might seem that good investment opportunities fluctuate with the market but the truth is, depending on the investment type, now may or may not be an ideal time to buy.

The way in which income property is acquired affects the success of the investment more than the time at which it is purchased. This is due to reliance of income property on economic fluctuations. In present circumstances this is overtly apparent as the government’s expenditures continue to surpass revenues in response to the recession.

There is both support of and opposition to this method, but the fact remains that to allow this spending, new bills have been printed; therefore, there is too much money in existence.

When evaluating the timing of income property investment, past recessions can provide insight into the current economical situation. The severity of a recession is affected by the amount of excess generated in the previous recession. A longer span of time between peaks results in more overage.

History can lend some insight into what the present situation means for investing in income property. The current recession is in its 20th month. Based on past recession averages of 59 months peak to peak and 14 months peak to bottom, now should be a good time to invest.

With the understanding that the time is right, it is now critical to discuss how to invest given the specific aspects of income property and the current economic climate. Key mistakes made during recession peaks will cause property owners significant financial hardships. Those suffering in the current conditions most likely set unwise terms, borrowed too much money, demonstrated poor follow-through, and set the stage for higher expenditures than revenues.

As NetGain has addressed in previous articles, these issues are not to be taken lightly and should be strongly considered and addressed before making the decision to invest. Right now terms of mortgage are a critical point of focus due to the influx of currency. With increased interest rates, inflated prices, and strategic terms, investors can ultimately use money of decreased value to repay the mortgage.

The key is to negotiate the mortgage correctly using the following guidelines: -Interest Rate: Should always remain fixed -Term: 20 years or more -Due Date: None -Mortgage should be eligible for gradual liquidation or prorated write-off -Debt should be non-recourse -No lock-ins over one year -No pre-payment penalties over 1.5% -Eligible assumptions will be accepted

Today’s economic environment presents an attractive investment opportunity for acquiring income property. Considering the key components discussed in this article will ensure that the transaction goes smoothly and the investment is set up for success.