The US housing market is in a slump, no one would question that, but a slump offers bargains as well as disasters. What was an un-affordable property just a year or so ago, may well now be within reach and many real estate investors are on a bargain hunt at the moment.
Many ordinary people have already made a killing by investing in realty. They were probably very apprehensive about buying the first investment home, but as long as that goes well, it is easy to get hooked! In case you keep mulling it over and wonder about the risks, here is a starter kit of very basic pondering points.
As a follow up to all those who asked the question, “how much is the Amazon rain forest?” in the most unusual properties for sale post a few weeks ago, I have now found out the price. – A cool $100,000,000 . This is taken from Viviun’s website with a few spelling mistakes corrected. You would think someone selling a one hundred million dollar property could afford a decent copy writer. Email me if you are interested Mr. Viviun.
Former Federal Reserve Chairman Alan Greenspan said he has “no particular regrets” and that the deepening slump in the U.S. housing market isn’t a result of his policies.
“Markets are becoming aware of the fact that the decline in house prices is not stopping,” Greenspan said today in Oslo. “I have no particular regrets. The housing bubble is not a reflection of what we did, as it is a global phenomenon.”
- At Home, but Not in Their Own
- washingtonpost.com
- Consider that house prices could fall 30%
- nytimes.com
- Behind Freddie and Frannie’s Free Fall
- biz.yahoo.com
- Mortgage Giants: The cracks are spreading
- economist.com
- Freddie, Fannie Shares Will Continue to Slide
If you’re ready to invest in residential investment property, you are about to set off on a juicy, long-term investment that will bring you big bucks in the years to come – if you manage your money wisely. The first step on your way is to get an investment property loan.
More on Residential Investment Property Loans – Crunching Numbers
Despite massive cuts in price ( Las Vegas developer KB Home started slashing prices several months ago and in the 1,400-home Huntington community, a subdivision of two-story stucco houses west of the famed Strip, homes that started at $320,000 a year ago are now listed for $270,000,) the US housing market continues to decline.
According to the National Association of Home Builders, sixty percent of builders cut prices last month to no avail. The reasoning is that buyers are wary of buying a new home for fear that another price cut may be in the offing afterwards and they will have to eat a portion of the sale price immediately. There’s a certain twisted logic to this thinking that’s leaving builders in a no-win situation.
What are FSBO homes, and can you really make money flipping them? First some definitions. “Flipping” refers to buying and selling real estate for a profit over a short period of time. Some “flippers” are looking only to make money from buying low and reselling quickly, while others repair and improve or otherwise add value to the property before selling it – an important distinction we’ll get back to in a moment.
Gaining financial security is the main reason why most people turn to property, which is no surprise because property has been and continues to be one of the most solid investments around.
Investing in property represents the best reward vs. risk investment you can make for you and your family. It’s commonly known that pensions are giving poor returns, so whilst other investments are failing to deliver, property investment in the UK and overseas continues to grow.
When a fairly new company (E*Trade began life in 1996) can wipe $2.2 billion off it’s market value, write off somewhere in the region of $1 billion in assets and the President of the company can sill claim that E*Trade remains “well capitalized by regulatory standards” and would continue to be so even if it absorbed an immediate write-down of more than $1 billion, somethings very wrong. Either the regulatory standards need changing, or the company has been overcharging it’s customers.
