Wednesday, March 7, 2012

Investing In Real Estate ... Is it Safe?



One thing you could always count on was a long and even in some cases short term Real Estate investment. The safe investment most baby boomers had in there portfolios for retirement was and hopefully for some still is Real Estate. Most long term Real Estate investing is safe. Like any investment tool you need to be in it for the long haul. Real Estate investors are making millions buying and selling and this is still happening in today’s market. In the mortgage meltdown of 2007/2008 many baby boomers and others found themselves in deep trouble with declining values, meaning their net values were declining, many are still losing their properties. For some they were losing their retirement!
I have talked to many people of all ages all over the US losing their properties. This is a very unfortunate and very sad.  We will all bounce back from this and we will all recover from this. Remember we are a nation of leaders and leading us is a generation that got here without seat belts, car seats or helmets. We are a tough bunch and we will all recover and thrive.

 Our country is seeing signs of recovery with more jobs and unemployment numbers going down, yet 1 in 6 homes are still in default and after the big settlement with the big five in February we will be seeing more foreclosures after a 2011 foreclosure freeze due to fraud and “Robo Signing”. Count on more foreclosure in 2012. This does not mean you shouldn’t be investing, just the opposite.

With all that said I still think Real Estate is a safe investment if you understand and do it wisely. In this market you need to be very careful and know your market and values. Before you could throw a rock at a property, fix it up and sell it and make money, not the case anymore. Or you could simple buy your primary residence live in it for 5 years and watch your equity grow, not the case anymore. Well depending on your market area but in most cases no. Real Estate is like any other investment tool it has its risks and rewards. So if you are on the fence about investing OMG get off the fence there are many good reasons to invest now but here are a couple things that will never be better then now.

1)      Interest rates now 3.5% on a 30 yr fixed. We haven’t seen rates this low since 1955. When do you think this will happen again?
2)      Home prices are at an all time low! With REO’s, Foreclosures and Short Sales. It’s a buyer’s market. Get out there and make some offers. It may take several before you actually get a home. But you have to start somewhere. When do you think you will have this kind of inventory of homes to choose from again at these prices?

I am not even going to go into all the loan programs and down payment assistance programs, investor deals up to 90% LTV unheard of in the investor world just a few months ago. The programs are there, the difference is now you have to qualify, really qualify but don’t let that scare you off. Get started with someone who is willing to help you reach your goals, clear up your credit if needed, established your credit if needed. Buy a vacation home or dream home in HAWAII because the inventory is great here too!

American is on Sale everyone and if you don’t think so then ask yourself this, why are more foreign real estate investors coming to this country and buying property now more than ever before.
 The rest of the world isn’t blind to two pretty obvious facts:
1)      The US housing market is way undervalued.
2)       The dollar is trading at rock bottom against almost every other currency.

So don’t sit back on your high fence and miss out? Don’t let the Chinese and the Canadians take your fortune? Get started today so you can take advantage of this amazing opportunity, the likes of which you will probably never see again. 

Please remember when you are negotiating with a bank for the purchase of a home in their inventory, they need to sell it, to get it off their inventory in order for them to be able to make new loans and borrow new money. Some banks in some markets are discounting homes 65%-75% from asking price. Don’t pay too much for these homes. Do your homework, work with an experienced Realtor. Know your market! Start living the good life and start investing in real estate NOW.

I am always available for questions and love your comments.

Fun Sites to check out;

Roxy Redenbaugh
ACMC, Loan Consultant
Branch Manager
NMLS#269926


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