Most experts agree that the days of flipping properties are over. With weak demand, slow sales and high inventory in most US markets, the question real estate investors are asking is, “Where do I invest now?”
As always, there are markets around the country where homes are affordable, the underlying economy is strong, and appreciation is imminent. These are the markets you should consider looking at for your next long-term real estate investment. [Read more…]
With falling prices and rising inventories, investors are finding themselves in the best buying position in almost a decade.
A recent polls by Reuters/Zogby tells us that it’s a good time to buy. And another poll by Associated Press and AOL also reveals that it’s a good time to buy but 60% of those polled won't buy any real estate within the next two years.
The disparity is probably due to economic fears which are causing consumers to tighten their purse strings. The Reuters/Zogby poll said that nearly 75% of American’s believe the economy is in a recession right now, and almost 50% rated their personal financial situation as negative.
The AP/AOL poll said that nearly 14% of mortgage holders fear they will miss a mortgage payment soon. And 30% said they are concerned their home’s value will decrease within the next two years.
The important thing to remember is that you should stay focused on your local neighborhood and those of your real estate investments. Remember that real estate is primarily driven by local economic factors such as jobs, housing inventory, and supply and demand.
There is no human invention more complex than the tax codes, and among the most complicated are the laws surrounding real estate investing. So, what follows is NOT to be considered legal advice — consult your attorney or tax accountant before making any decisions.
Well, now that the rear is covered, what considerations should the real estate investor keep in mind? Since laws vary between countries, and between states within the U.S., any general advice would be worthless. But here are some particulars that apply in many areas. [Read more…]
Roughly 20 percent of all U.S. home sales in March were “short sales” according to a real estate industry survey conducted by Washington-based Campbell Communications. According to their research, two-thirds of short sales are initiated by homeowners and one-third are launched by mortgage lenders (as a foreclosure alternative).
In a typical home transaction the seller gets final say on which buyer gets the home, but in a short sale the lender weighs in on that decision, since it’s the lender who won’t recoup 100 percent of the seller’s mortgage balance as in a “normal” home transaction.
Buying a Short Sale Can Be A Time-Consuming Process 2035
It is important to know where the seller is in terms of discussions with the lender. The lender can drag the short-sale process on for a very long time. An offer may take anywhere from four to six weeks to get a response. But if the buyer is in the market to purchase a short-sale, then patience is going to be vital in order to pick up that good deal.
Short Sales Now Widespread 2035
There is a lot of media attention on foreclosures these days. It seems everywhere you turn the radio, TV and newspapers have increasingly more negative news.
Although there are many markets offering great real estate investment opportunities, it is true that there is a significant increase in foreclosures, and nationally the housing market has slowed down significantly.
February foreclosure activity was down 4 percent from the previous month but still up 57 percent from February 2007 according to the latest RealtyTrac U.S. Foreclosure Market Report. That equated to 1 out of every 557 households having a foreclosure filing of any sort. Nevada, California, and Florida posted the top state foreclosure rates, with California and Florida metro areas accounted for nine of the top 10 metro foreclosure rates in February.
I've put together a short list of links if you are interested in more information on the current state of foreclosures:
