If low priced real estate and historically low interest rates weren't enough, you can add rising rents to the list of reasons why now is an unprecedented time to buy real estate.

Currently at around 10%, rental vacancy rates are already quite low, but Peggy Alford, president of Rent.com, predicts the vacancy rate will drop to a mere 5% by 2012 in this CNNMoney.com article. The law of supply and demand dictates rental rates will rise accordingly, and Alford predicts rates will rise on average 7% each of the next two years.

So, real estate investors can buy now with confidence that they will be able to fill their investment properties more quickly and for a higher rental amount, thus increasing their ROI. Meanwhile, the old adage that owning makes more sense in the long term just got more blatantly obvious. "Long term" is the key word, but that doesn't necessarily mean you have to plan to live in the home for the long term.

For instance, let's say you currently rent because you aren't feeling prepared to live in a particular home for 5-10 years, but let's also say you understand your monthly rent is going nowhere beyond the landlord's pocket. If that's the case, then consider buying a home (which can be done with as little as 3.5% down) that has the rental capacity to match or surpass your monthly mortgage payment. By choosing a home or condo that gives you the option of renting out for the amount of your monthly payment or better, you have just removed the requirement of having to live in the home for 5-10 years. If you decide to move in a couple years, then you just rent the home and continue to hold the appreciating asset it at no cost to you… then sell it when the timing is right.

Simply put, this is how real estate enhances your life by improving your financial and retirement outlook, especially during this unprecedented mix of low prices, crazy low rates, low vacancy rates, and rising rents.