The Wall Street Journal is saying it’s Time to Buy that House (article will temporarily be available to nonsubscribers via the link OR for download here: online-wsj-com.Buy That House).

Sometimes the doom and gloom headlines miss what simple math shows—when prices and mortgage rates are low (they are), the time is ripe to buy.

The main points of the article are summarized or quoted below.

• While houses should not be considered the quick cash cow they were during the boom, they are viable investments long term.
• “For investors seeking income,” considering a property’s “rent yield” helps determine whether the investment is worthwhile. According to the article’s formula, “The median market’s rent yield is 9.3% and Detroit’s is 17.9%.”
• Investors then “subtract for taxes, insurance, upkeep and other expenses—costs that vary widely. Supposing total costs are 4% of the purchase price, the formula still leaves “a 5.3% rent yield in the typical market. With the 10-year Treasury yield at 2.2% and the Standard & Poor’s 500-stock index carrying a dividend yield of 2.1%, rents for residential housing in many markets look attractive.”

Combine the current affordability with the The Impending Housing Shortage and you can make a strong case for any prospects who are on the fence.

New home sales consultants—add this to your arsenal for persuading new home buyers that now is the time.

Sales coaches—add this to your new home sales training program.