They assert the housing and housing market is at a standstill. Folk don't want to sell because prices are so low. Buyers are scared because they don't know if prices have bottomed out or not. It's a cautious time in the housing market.
Or it it?
If you're a real estate investor then you could already know that this is a great time to purchase real-estate. And if you are pondering investing, and have been sitting on the fence, then you may already have missed out on some superb chances.
Here's why...
The easy answer is costs may never be this low again. As you know, property values are something that just about always go up. In the many thousands of years folk have been purchasing houses, the general trend is for costs to continue to go up and up.
Yes unlike the stock market, which always has periods of booms and busts, real estate goes up... Period. In stock investment they actually have an animal named for when stock costs go up or prices fall. A bear market is when prices go down. A bull market is when prices go up. If that does not say the stock market is cyclical then nothing does.
What Types of Real-estate To Buy
Of course, the overused mantra for buying real estate is location, location, location. Buy real-estate in a great location and you can't lose. I suppose that's still right. If you purchase a home on the beach, in the mountains, or in some ritzy neighborhood, then you usually always do well.
Special Sorts of Property Today
But today there are some options that are rather different than in a standard home real estate market.
Foreclosures
Foreclosures are at a new high. And in defined portions of the country, like Florida and Nevada, that were hit especially hard by the foreclosure problem, foreclosed properties are exceedingly commonplace. With foreclosure homes being so common, buying a repo'ed property can be a smashing investment. These homes are sometimes up for auction and if you've got some prepared cash, you'll find a wonderful deal.
But naturally, they can also have issues. Many times, folk have abused these homes because they knew they were leaving them. Frequently the owners cease making payments and that means they have lost their will to look after the property and may let stuff like repairs and landscaping fall by the way.
Shore Sales
Until fairly recently, lenders have been reluctant to let homes sell "short" of what is owed on the mortgage. But the foreclosure mess, and the backlog of houses looking at repossession, has meant lenders are way more open to get shot of homes that are moving towards foreclosure. This makes buying short sales a wonderful investment bargain.
And with a lot of houses being so "underwater," or worth less than the loan on the home, house owners realize that getting out from that situation may be better than waiting for the market to come back. And so short sale homes are becoming more available on the market. You could even be able to find a realtor who focuses on short sale investments. That may be a good way to go for an investor.
Or it it?
If you're a real estate investor then you could already know that this is a great time to purchase real-estate. And if you are pondering investing, and have been sitting on the fence, then you may already have missed out on some superb chances.
Here's why...
The easy answer is costs may never be this low again. As you know, property values are something that just about always go up. In the many thousands of years folk have been purchasing houses, the general trend is for costs to continue to go up and up.
Yes unlike the stock market, which always has periods of booms and busts, real estate goes up... Period. In stock investment they actually have an animal named for when stock costs go up or prices fall. A bear market is when prices go down. A bull market is when prices go up. If that does not say the stock market is cyclical then nothing does.
What Types of Real-estate To Buy
Of course, the overused mantra for buying real estate is location, location, location. Buy real-estate in a great location and you can't lose. I suppose that's still right. If you purchase a home on the beach, in the mountains, or in some ritzy neighborhood, then you usually always do well.
Special Sorts of Property Today
But today there are some options that are rather different than in a standard home real estate market.
Foreclosures
Foreclosures are at a new high. And in defined portions of the country, like Florida and Nevada, that were hit especially hard by the foreclosure problem, foreclosed properties are exceedingly commonplace. With foreclosure homes being so common, buying a repo'ed property can be a smashing investment. These homes are sometimes up for auction and if you've got some prepared cash, you'll find a wonderful deal.
But naturally, they can also have issues. Many times, folk have abused these homes because they knew they were leaving them. Frequently the owners cease making payments and that means they have lost their will to look after the property and may let stuff like repairs and landscaping fall by the way.
Shore Sales
Until fairly recently, lenders have been reluctant to let homes sell "short" of what is owed on the mortgage. But the foreclosure mess, and the backlog of houses looking at repossession, has meant lenders are way more open to get shot of homes that are moving towards foreclosure. This makes buying short sales a wonderful investment bargain.
And with a lot of houses being so "underwater," or worth less than the loan on the home, house owners realize that getting out from that situation may be better than waiting for the market to come back. And so short sale homes are becoming more available on the market. You could even be able to find a realtor who focuses on short sale investments. That may be a good way to go for an investor.
About the Author:
Rick Hart is an internet business consultant. He provides selling tools for purchasing short sales in Tampa that help with loan alterations, short sales and foreclosures.
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