We all know that the property market hit the wall one or two years back. Many property investors lost serious cash and many house owners who got into the market for the first time are now "underwater" and owe far more than their homes are worth. And we all know what the property collapse did to housing prices not to mention the construction and home building industry.
It all left many people, stockholders and householders alike, feeling shell-shocked and alarmed about ever making an investment in real-estate again.
Yes the marketplace has been "adjusting" to say the least, but it is not anything that has not occurred before. And although it occurred before somehow life went on and speculators and home owners started to see their investments grow again. And some stockholders who knew when to buy after a previous "collapse" went on to make masses of cash and become made.
Well it may be that time again. The time when getting back into the marketplace will mean an opportunity to get a high profit on your investment... Again.
And for current homeowners who purchased say 15 years ago, and studied from the sidelines as their houses doubled in value or that's what they thought. Some people got off the sidelines and took out home equity loans against this imaginary "profit" and now owe more than their homes are now worth.
And if you stayed on the sidelines, and didn't do anything, you are now fine although watching that home go down in value was as depressing as it was stirring to watch it go up in value. Now you are just in a holding mode and hoping that your house values will go back up.
Of course, they may. They always do. It is simply a question of time.
But while home prices are down this is a superb time to get back into the property market. Of course, it still is frightening, and the economy is improving so slowly that you might still be shell-shocked and afraid to do anything.
But it is a great time to do 2 things....
Refinance Your Home
Now this isn't exactly buying a new home, but it may have an identical effect to getting a great deal on a new home. If your present mortgage is over 7% interest then today's amazing mortgage rates are a chance to save a little bit of cash.
Think about it...
A $200,000 loan at 7% for 30 years will cost $478,000 over the life of that loan.
A $200,000 loan at 7% for 30 will cost $323,000 over the life of that loan.
That's a savings of $155,000.
If you do the loan for 15 years at the same rate it will cost $257,000.
That could be a savings of $221,000.
Sort of big savings don't you think?
Buy A Short Sale or Foreclosure Home
With today's marketplace there's many chances to buy short sales and foreclosure houses. Someone's loss can be your game... As sad as that is.
But it's right.
If you can find a good real estate agent who understands the short sales process then you may be able to find deals that were unusual in the last 30 years. Just make sure you also know a good real estate lawyer to help in the negotiations. Banks remain a bit miserly and take a very long time to put through short sales.
But if you've got the skills and the patience you may get the deal of a life-time.
It all left many people, stockholders and householders alike, feeling shell-shocked and alarmed about ever making an investment in real-estate again.
Yes the marketplace has been "adjusting" to say the least, but it is not anything that has not occurred before. And although it occurred before somehow life went on and speculators and home owners started to see their investments grow again. And some stockholders who knew when to buy after a previous "collapse" went on to make masses of cash and become made.
Well it may be that time again. The time when getting back into the marketplace will mean an opportunity to get a high profit on your investment... Again.
And for current homeowners who purchased say 15 years ago, and studied from the sidelines as their houses doubled in value or that's what they thought. Some people got off the sidelines and took out home equity loans against this imaginary "profit" and now owe more than their homes are now worth.
And if you stayed on the sidelines, and didn't do anything, you are now fine although watching that home go down in value was as depressing as it was stirring to watch it go up in value. Now you are just in a holding mode and hoping that your house values will go back up.
Of course, they may. They always do. It is simply a question of time.
But while home prices are down this is a superb time to get back into the property market. Of course, it still is frightening, and the economy is improving so slowly that you might still be shell-shocked and afraid to do anything.
But it is a great time to do 2 things....
Refinance Your Home
Now this isn't exactly buying a new home, but it may have an identical effect to getting a great deal on a new home. If your present mortgage is over 7% interest then today's amazing mortgage rates are a chance to save a little bit of cash.
Think about it...
A $200,000 loan at 7% for 30 years will cost $478,000 over the life of that loan.
A $200,000 loan at 7% for 30 will cost $323,000 over the life of that loan.
That's a savings of $155,000.
If you do the loan for 15 years at the same rate it will cost $257,000.
That could be a savings of $221,000.
Sort of big savings don't you think?
Buy A Short Sale or Foreclosure Home
With today's marketplace there's many chances to buy short sales and foreclosure houses. Someone's loss can be your game... As sad as that is.
But it's right.
If you can find a good real estate agent who understands the short sales process then you may be able to find deals that were unusual in the last 30 years. Just make sure you also know a good real estate lawyer to help in the negotiations. Banks remain a bit miserly and take a very long time to put through short sales.
But if you've got the skills and the patience you may get the deal of a life-time.
About the Author:
Rick Hart is an internet business consultant. He provides tools for short sale lawyers in Tampa that help with loan modifications, short sales and foreclosures.
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