You see it on the news every evening…foreclosures continue to rise. Prices continue to fall. But there is some good news as well, sales are up. That’s right the market for foreclosures is booming and sales are rising at a steady rate. Short sales are selling as well. Does this mean it’s time to finally get into the real estate market for a good investment? Who knows? But if you think it’s the right time for you to get in on the deals consider a few things.
Qualifying for a home isn’t as easy as it used to be and most people will need a down payment. If you are a buying a home to live in you may be able to get an FHA loan with only 3.5% down and asking the seller to pay your closing costs. If you are buying a rental, be prepared to put 10% or more down and probably closer to 20% plus your closing costs.
Remember that home prices may not stabilize for a while longer so don’t get caught in bidding wars with too good to be true foreclosure prices. The banks prices their homes low for a fast sale at a higher price so don’t fall into that trap.
Homes are not the only real estate investment out there. Vacant land has dropped significantly as well and many vacant land sellers have the ability to call the paper on their land. Before the bottom fell out many small builders and investors were buying land lots, building homes on spec and selling at a significant profit. Buying a lot now for future use may be an excellent investment since building a home is not necessarily a quick process. You’ll need to plan for many things and you’ll need home plans before you can plan much of anything. There are many different Home Plans to choose from featuring different sizes and styles and amenities. Vacant land can be an excellent investment and spec homes are a gold mine if done properly.
Whether you are buying a home to live in, to rent or a piece of land for a custom or spec home remember we are not out of the woods yet but there are deals to be had if you are in the right place at the right time. Be on the look out.
Qualifying for a home isn’t as easy as it used to be and most people will need a down payment. If you are a buying a home to live in you may be able to get an FHA loan with only 3.5% down and asking the seller to pay your closing costs. If you are buying a rental, be prepared to put 10% or more down and probably closer to 20% plus your closing costs.
Remember that home prices may not stabilize for a while longer so don’t get caught in bidding wars with too good to be true foreclosure prices. The banks prices their homes low for a fast sale at a higher price so don’t fall into that trap.
Homes are not the only real estate investment out there. Vacant land has dropped significantly as well and many vacant land sellers have the ability to call the paper on their land. Before the bottom fell out many small builders and investors were buying land lots, building homes on spec and selling at a significant profit. Buying a lot now for future use may be an excellent investment since building a home is not necessarily a quick process. You’ll need to plan for many things and you’ll need home plans before you can plan much of anything. There are many different Home Plans to choose from featuring different sizes and styles and amenities. Vacant land can be an excellent investment and spec homes are a gold mine if done properly.
Whether you are buying a home to live in, to rent or a piece of land for a custom or spec home remember we are not out of the woods yet but there are deals to be had if you are in the right place at the right time. Be on the look out.
