I saw an article in Forbes Magazine this past week announcing the fact that Google is investing in real estate. No, not just to continue to gain market share in searching for homes on the internet, they have actually invested $86 million into helping fund 480 low-income housing units across the Midwest and West Coast.
Apparently, the boatloads of cash they are sitting on is now being invested in places other than dominating their competition in search-land. While Google has been involved with real estate search for quite some time, this investment is different. This is an actual investment that “will go into a Low Income Housing Tax Credit (LIHTC) that will give tax credits to builders and developers of homes for low-income families and senior citizens.” Yes, they will probably receive tax breaks on their investment, but let’s face it, they are in the business of making money and keeping shareholders happy. This investment is a business decision.
I have had conversations with people in our industry and with friends in the financial services industry about the amount of people waiting to “time” the market so they can buy at the bottom. While many Americans are sitting on their cash, the big boys appear to be doing something different by investing in low income housing.
While many people struggle with job stability and economic uncertainty, there are others that are waiting for someone to tell them it is ok to own a home again. None of us has a crystal ball, but for some, the market is looking like an opportunity to purchase more home at a lower interest rate than they thought would have been possible in the past.
For sure, we will continue to help people through this market where short sales and bank-owned homes are so prevalent. Like Google, people will continue to put their money where they see fit. Of course, when you decide it is time to buy or sell real estate, “Just Call Nick!”