Positive recovery has to happen sometime but it isn’t happening in the immediate future. The time to invest is now before the recovery happens. Investing in undervalued assets prior to an economic recovery provides the investor with immediate equity once the market starts the upward climb.
Positive recovery has to happen sometime but it isn’t happening in the immediate future. The time to invest is now before the recovery happens. Investing in undervalued assets prior to an economic recovery provides the investor with immediate equity once the market starts the upward climb.
According to the recent Campbell/Inside Mortgage Monthly survey for February 2010, fifty percent of home sales were for distressed properties. This is a telling bit of information for the property investor. Simply put, if half of all sales are ones for foreclosure and short sale properties, then the news is there are deals to be struck and money to be made. Apparently the high number of these types of sales hitting now has to do with banks having held onto their REO’s (bank owned properties) with the hope that the economy would recover by the first part of 2010. However, since there doesn’t appear to be a clear end in sight, banks are beginning to put those properties on the market to get what they can for them.
One other cause for the influx of lower priced transactions is due to homeowners delay in foreclosing or listing their own homes as a short sale. Homeowners hit by the difficult economic times try to hold on to their homes for as long as possible. However, without an economic recovery, are forced to foreclose and we are seeing more of that lately. As well, the government held a temporary foreclosure moratorium last fall which has now expired causing any backlog of potential foreclosures to come on the market.
On top of this, the rental market is growing. As homeowners are unable to hold on to their own homes, renting becomes not only desirable but necessary. Renting a home in lieu of selling in a low market is the smartest way to provide income while holding onto an asset until the market recovers. Good news for investors.
The savvy real estate investor knows this is the time to stock his portfolio with undervalued assets which can currently be rented and then later sold for significant profits once the housing market recovers. Great investment opportunities exist now and shouldn’t be missed.
What do you think?
InvestmentPropertyMadeEasy.com
Investment Property: How to Choose a Good General Contractor
Hiring a good general contractor for your investment property is about as important as finding a good dentist. If an investor needs to make improvements or repairs, an experienced general contractor will see that the work is completed on time and within budget. How do you ensure you’re hiring the right one?
Investment Property: How Do You Choose?
Profitable real estate investing demands that you wisely purchase investment property. If you don't, it will not take long for you to be broke!
Investment Property: How to Choose a Good Real Estate Attorney
Protecting your investment property is a main priority. An investor needs to have a good real estate attorney on his side. But since you are not a lawyer yourself, how do you determine who will be the best choice?
