FENOM TIMES!
"Good News About the Recent Housing Crash." It is hard to find anything good to talk about in the world's recent housing crash. However , when banks start to repossess homes. These auctions offer ample opportunities for investors,and the spend-conscious alike. Last year the US sub-prime market crashed taking 70 of the
largest mortgage lenders with it.The market is experiencing record numbers of repossessions and property investors are watching the markets closely, waiting until the number of repossessions outstrips the number of buyers. Unlike the recent flippers of the last 10 years investors are not rehabbing and selling.Instead they are sitting on these properties for several months, or even years. Once they buy they rent the property to cover costs and wait for the markets to improve, which could be soon. The Canadian market did not lend so recklessly. Their dollar is strong, and their interest rates low. This will create a `safe' market for American banks to invest in. The banks will tighten their lending criteria, all of this is `balancing' the economy. This rebalancing is expected to hit the UK before the end of 2008, and the US in 2009.The rebalancing is important to a property investor's strategy. A predicted rebalance indicates that the market does not expect a recession, but a quick return to profit and wealth generating. Only the consumers who overstretched themselves, borrowing too much, or spending too freely, or those who lied on their mortgage
application will be hit hard.Depending on the time line, an investor can purchase homes for as much as 50% off the current market value – if they are ready to act.
Foreclosure investing has long been a mainstay of the property investment world. Risk is lower, but only if the investor has an opportunity to look at the property. Many investors jump too fast and purchase properties that are seriously damaged. There are unlimited horror stories of investors who purchased a foreclosure at 20 – 30 and even 50% lower than market value, only to lose their shirts because the house required extensive repairs. There is no limit of foreclosure properties. Investors may not need a bank loan. They just need to identify an interested buyer. It is anticipated that the foreclosure properties market is will grow at an accelerated rate over the next few years. The foreclosure market offers value on the money invested and re-evaluation of the property. A property investor needs to create a solid strategy for success. There will always be another `great deal.' There is no reason for a property investor to risk their strategy and plan for success because someone alerts them to a hot tip.