Everyone knows that the real estate market hit the wall a couple of years back. Many property investors lost serious cash and many homeowners who got into the market for the 1st time are now "underwater" and owe much more than their houses are worth. And we all know what the property collapse did to housing costs not to mention the construction and home building industry.
It all left many individuals, investors and homeowners alike, feeling shell-shocked and scared about ever making an investment in property again.
Yes the housing market has been "adjusting" to say the least, but it is not anything that has not occurred before. And even though it happened before somehow life went on and investors and householders started to see their investments grow again. And some stockholders who knew when to buy after a prior "collapse" went on to make masses of cash and become well off.
Well it could be that time again. The time when getting back into the real estate market will mean a chance to get a great return on your investment... Again.
And for current house owners who bought say 15 years ago, and observed from the sidelines as their houses doubled in value or that is what they thought. Some folks got off the sidelines and took out house loans against this illusionary "profit" and now owe more than their homes are now worth.
And if you stayed on the sidelines, and decided not to do anything, you are now fine even though watching that home go down in price was as depressing as it was stirring to watch it go up in value. Now you are just in a patient mode and wishing that your home values will go back up.
Of course, they will. They usually do. It's just a matter of patience.
But while home prices are down this is a great time to get back into the real-estate market. Of course, it is scary, and the economy is improving so slowly that you'll still be shell-shocked and frightened to do anything.
But it's a great time to do two things....
Remortgage Your Home
Now this is not exactly purchasing a new home, but it might have a similar effect to getting a good deal on a new home. If your current mortgage is over 7% interest then today's dazzling mortgage rates are a chance to save some money.
Think about it...
A $200,000 loan at 7% for 30 years will cost $478,000 over the life of that loan.
A $200,000 loan at 7% for 30 will cost $323,000 over the length of that loan.
That's a savings of $155,000.
If you do the loan for 15 years at the same rate it will cost $257,000.
That sure is a savings of $221,000.
Sort of big savings don't you think?
Get A Short Sale or Foreclosure Home
With today's marketplace there's many chances to buy short sales and foreclosure houses. Somebody's loss can be your game... As sad as that is.
But it's right.
If you can find a good realtor who understands the short sales process then you might be able to find deals that were unheard of in the last 30 years. Just make sure that you also know a good real estate lawyer to help in the negotiations. Banks are still a bit stingy and take a considerable time to put through short sales.
But if you've got the abilities and the patience you can get the deal of a life-time.
It all left many individuals, investors and homeowners alike, feeling shell-shocked and scared about ever making an investment in property again.
Yes the housing market has been "adjusting" to say the least, but it is not anything that has not occurred before. And even though it happened before somehow life went on and investors and householders started to see their investments grow again. And some stockholders who knew when to buy after a prior "collapse" went on to make masses of cash and become well off.
Well it could be that time again. The time when getting back into the real estate market will mean a chance to get a great return on your investment... Again.
And for current house owners who bought say 15 years ago, and observed from the sidelines as their houses doubled in value or that is what they thought. Some folks got off the sidelines and took out house loans against this illusionary "profit" and now owe more than their homes are now worth.
And if you stayed on the sidelines, and decided not to do anything, you are now fine even though watching that home go down in price was as depressing as it was stirring to watch it go up in value. Now you are just in a patient mode and wishing that your home values will go back up.
Of course, they will. They usually do. It's just a matter of patience.
But while home prices are down this is a great time to get back into the real-estate market. Of course, it is scary, and the economy is improving so slowly that you'll still be shell-shocked and frightened to do anything.
But it's a great time to do two things....
Remortgage Your Home
Now this is not exactly purchasing a new home, but it might have a similar effect to getting a good deal on a new home. If your current mortgage is over 7% interest then today's dazzling mortgage rates are a chance to save some money.
Think about it...
A $200,000 loan at 7% for 30 years will cost $478,000 over the life of that loan.
A $200,000 loan at 7% for 30 will cost $323,000 over the length of that loan.
That's a savings of $155,000.
If you do the loan for 15 years at the same rate it will cost $257,000.
That sure is a savings of $221,000.
Sort of big savings don't you think?
Get A Short Sale or Foreclosure Home
With today's marketplace there's many chances to buy short sales and foreclosure houses. Somebody's loss can be your game... As sad as that is.
But it's right.
If you can find a good realtor who understands the short sales process then you might be able to find deals that were unheard of in the last 30 years. Just make sure that you also know a good real estate lawyer to help in the negotiations. Banks are still a bit stingy and take a considerable time to put through short sales.
But if you've got the abilities and the patience you can get the deal of a life-time.
About the Author:
Rick Hart is a web business advisor. He provides tools for short sale barristers in Tampa that help with loan modifications, short sales and repos.
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