Over the last few years financial institutions were giving out many mortgages without much concern to the purchaser’s credit history. The recent sub-prime mortgage issues coming to light in the lending industry may give you an excellent opportunity for investing in real estate. There have been many home borrowers that purchased homes with sub-prime loans and now find themselves in a bit of a pinch or in many cases foreclosure as rates adjust. This has caused a substantial tightening of lending guidelines and an increased number of foreclosure properties on the market.
Here is where the effect of law of supply and demand can allow you to get a great investment. With less qualified home buyers on the market, home sellers have increased pressure to lower prices to sell. Plus with additional inventory of homes on the market due to foreclosures there is even additional downward pressure on home prices.
What this means is that right now prices are down, creating an excellent time to buy.
Another consideration is with less people purchasing homes, more people are renting them. This is causing supply in the rental market to tighten up.
All these inter-related factors are making it an ideal time to purchase rental properties with an eye towards holding them a few years. Use the rental payments to cover your mortgage payment over that time. Then as the real estate market rebounds and the values come back up sell for a profit.
Right now the best values can generally be found in the foreclosure market. Banks have been pricing aggressively of late to ensure the property sells and this creates many opportunities for investors looking for rental properties with a high potential of appreciation.
If this idea sounds appealing to you, visit my website to get in touch with me so you do not miss this opportunity. The time is right now!
As your Colorado Real Estate professional I can guide you through this process. In states other than Colorado, I can still help you find a professional or check the Authority Real Estate Directory.
