Investment Property: It’s Still the Best Time to Invest

[Jay Redding]

Positive recovery has to happen sometime but it isn’t happening in the immediate future.  The
time to invest is now before the recovery happens. Investing in
undervalued
assets prior to an economic recovery provides the investor with
immediate
equity once the market starts the upward climb. 

According to the recent Campbell/Inside Mortgage Monthly survey for February 2010, fifty percent of home sales
were for distressed properties.  This is a telling bit of information
for the property investor.  Simply put, if half of all sales are
ones for foreclosure and short sale properties, then the news is there
are deals to be struck and money to be made.  Apparently the high
number of these types of sales hitting now has to do with banks having
held onto their REO’s (bank owned properties) with the hope that the
economy would recover by the first part of 2010.  However, since
there doesn’t appear to be a clear end in sight, banks are beginning
to put those properties on the market to get what they can for them. 

One other cause for the influx of lower priced transactions is due to homeowners delay in foreclosing or listing their own homes as a short sale.  Homeowners hit by
the difficult economic times try to hold on to their homes for as long
as possible.  However, without an economic recovery, are forced
to foreclose and we are seeing more of that lately.  As well, the
government held a temporary foreclosure moratorium last fall which has
now expired causing any backlog of potential foreclosures to come on
the market. 

On top of this, the rental market is growing.  As homeowners are unable to hold on to their own homes, renting becomes not only desirable but necessary.  Renting
a home in lieu of selling in a low market is the smartest way to provide

income while holding onto an asset until the market recovers. 
Good news for investors.   

The savvy real estate investor knows this is the time to stock his portfolio with undervalued assets which can currently be rented and then later sold for significant
profits
once the housing market recovers.  Great investment opportunities
exist now and shouldn’t be missed. 

What do you think? 

InvestmentPropertyMadeEasy.com