Everyone that is building their 2011 real-estate investment business plan would like to have a magic ball that could tell them what the market will do. You're likely asking the question - should I still be buying rental properties in this economy? It's a difficult question to answer as there are a lot of variable to consider.
An article by the CIBC's Senior Economist Benjamin Tal answers some important questions about the year ahead. While Tal is fairly conservative in his outlook for 2011 it doesn't mean there won't still be good opportunities for buying rental properties, specifically positive cash flow real-estate. It just means investors will need to be more dilligent than in the past. Tal speculates that interest rates should remain low and stable for 2011 and that real-estate prices will drop slightly but then stabalize in the later half of the year. With near record low interest rates and a further reduction in prices there should be an increase in the availability of positive cash flow real-estate.
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