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Real Estate & Finance

  1. Jessica Noonan profile image59
    Jessica Noonanposted 8 years ago

    This is a great time to review your finances. If you have not thought of buying a rental property before ...it's time. Facing the current market of homes dropping in prices and rates in a all time low...it's time to look at these opportunities.  There is a wave of people loosing homes, but still need to live somewhere.  They are what is referred to as the Temporary Homeowners, which are folks who really were renters, got into homes for little to no down payments and were unable to pay their home or able to upkeep the maintainence,  The current stats show that these homes are going back to the bank and investors are picking up great buys. It's the 80's all over again with a twist...the rates are way better than they were back then.

    1. sarahbarret profile image61
      sarahbarretposted 5 years ago in reply to this

      Before venturing into the investment market, evaluate your priorities. You should check if you are considering buying a property. Understanding the importance of the region and more about the benefits you get. Membership in a standard business like ours, there no place for a bad deal.

      1. brentwilliams2 profile image75
        brentwilliams2posted 5 years ago in reply to this

        Wow, Sarah - you really pulled this one out of the archives!  smile  I was about to reply to Paul below until I realized he wrote it 3 years ago!

  2. Paul Edmondson profile image
    Paul Edmondsonposted 8 years ago

    Interesting.  From what I've read, people expect the housing market to get worse.  Maybe another 12 months until it bottoms out.

    The interest rates are better, but the standards for qualifying for a investment property are pretty steep now.  It will require a significant cash position and the rates are usually a quarter to a half point more at least.

    I've been meaning to write a blog post about this...

    1. Lissie profile image86
      Lissieposted 8 years ago in reply to this

      In the US that seems to be the consensus - might be time to look off shore!

  3. Misha profile image75
    Mishaposted 8 years ago

    Agree to Paul on this. More, I believe it will take several years for housing market to bottom out. And much deeper decline in prices...

  4. pauldeeds profile image
    pauldeedsposted 8 years ago

    Worse depends on your perspective -- there are winners and losers when home prices decline.     

    If you own a home, and expect to continue to live in it (or plan to exchange it for a similar home) you haven't really lost anything.  If you don't own a home, but want to buy one, declining prices are great -- you can get more house for your money.

    The people it really hurts are -- 1) old people that were counting on the false equity to buoy their retirement as they downsized or stopped owning a home altogether, 2) people that over extended themselves into investment properties that they couldn't afford, 3) people that were preyed on by the mortgage industry (or depending on your perspective -- foolishly entered into agreements they didn't really understand), and now have negative equity and payments they can't possibly afford.

    It would have been better for the economy if the market had been more rational all along, but the sooner house prices align with fundamentals the better as far as I'm concerned.  I don't know what the right approach is to lessen the macroeconomic effects of the correction, I'm not sure there is much that can be done.

  5. 60
    911loanposted 8 years ago

    I'm not sure either we have had home prices increase 10 fold while income has stayed the constant. I dont know how the next generation will afford housing.


  6. Paraglider profile image91
    Paragliderposted 8 years ago

    Hi Paul -
    If you ever decide to break your silence and write a hub, this is your topic! That was a great summary of the situation.

  7. mtgmanfl profile image61
    mtgmanflposted 8 years ago

    I agree with Paul.  There are winners and losers in every contest whether it be poker or stocks or the soft real estate market.  There is no shortage of people stating that the bottom is not here yet, and may be 6 months or more away.  In my market, there are excellent buys available, and activity is picking up because of it.

    You would be better off researching your own local market than listening to the news.

    1. 61
      kaitlyneposted 8 years ago in reply to this

      nice post, whats your opinion about real estate business for making money

  8. Reealjrd profile image59
    Reealjrdposted 7 years ago

    Hello All,

    Its the time to invest in real state. If purchased any land or building this time it will cost you too less. This time to go for real state field.

    1. JustMike profile image44
      JustMikeposted 5 years ago in reply to this

      Okay let's see. Well look at where the market is right now where you live. It's probably been pretty hammered. So could it go down another ten percent? Definitely, could it go down another twenty fife percent possibly. Could it go down another fifty percent I don't think so.
           Now, let's look at that same property from an investment perspective. In many area of the country you can buy a home and rent it right now for positive cash flow, which means more money in income than you pay in bills for upkeep monthly. Four years ago that was not the case and everyone would have said that was a good time to buy real estate. Now saying all of this i could be totally wrong and i could lose my shirt and be surviving off HP income for the rest of my life lol.
           Look at that house for sale down the street what would the mortgage and taxes be on it? What woud the rental market in your area support check craigslist. The rental market is very strong lots of demand across the country. Now  if you have positive cash flow even if prices fall another ten to twenty five percent as long as you someone paying your mortgage and a little extra for you, you can wait till prices stabilize. Because like the stock market bubble prices will not stay at this level forever. In fact in my area they have started to go up slowly over the months, nothing to write home about but enough.