This is a FANTASTIC Time to purchase real estate. Every day I see so many great deals. The money is still very cheap and the home prices have dropped drastically! The truth is that we currently have a great "Buyer's Market" - BUT only for those with great credit, a fair amount of money for a down payment, and documentation to show their employment and income for at least 2 straight years.
We have almost no 100% financing now. We also no longer have the famous, "Stated Income" loans. So we are back to the basics that have been around for years. This is really a much better place for us to be. It is much safer and - much more friendly!
For those of us working in the real estate business, whether in sales, loans, Title, Escrow, etc., we all saw quite an escalation of dishonesty in our field - and felt powerless to stop it. I suppose that this is what happens when there is a little money to be made. It is funny but some people are suddenly not happy making just their FAIR share - and so they begin devising ways to make even more. I see this like a person at a banquet who can't quit eating a wonderful dish. They get "out of control"! GREED *** GREED *** GREED! It is a funny thing. People who indulge and are then caught always seem to say something like, "Oh I knew I shouldn't have done it", or "Yeah I was wrong". But they didn't stop! Isn't it funny how money runs many people by causing them to make such foolish mistakes. It is interesting to see how money runs so much of the world!
So now we have a Buyer's Market with very little (if any at all) appreciation on our investments. Well, Real Estate is a fluctuating market - but it is rather predictable. It is said to always move in years of 10 - and from what I have seen looking back - this pretty much holds true. Some may say that we had a 12 year uphill run this time, but that may only mean that we will now have the same to balance out the market - time will tell. I don't care what anyone claims - NO ONE is a fortune teller any more than to observe this same cycle and then successfully "tweaking" it a bit. People keep buying and selling real estate in ANY market - but adding higher gas prices, a rising unemployment, an election year and the such to the pot - leads to much less discretionary spending and this does enter into the picture.
So as the market is settling down right now and balancing for those incredibly high home prices we all just need to sit it out for awhile in terms of appreciation. However, if you are looking for future investments and have all the criteria with which to qualify -this is the time that many true investors begin to buy and build up their home reserves to add to their net worth. This is the time to find those deals and hold until the market once again begins its uphill climb. Many investors are choosing to rent out their investments at this time. With so many people loosing their homes - they are going to need to rent somewhere.
For the First Time Home Buyer - the time could not be better. There are SO MANY Foreclosures and R.E.O.s on the market that you really can find a great deal. The money at 6.25 - 6.5% is still actually VERY cheap. You must remember that most people who have owned homes for any length of time bought them with an average interest rate of 10%. To us today that sounds VERY high! But for a First Time Home Buyer who qualifies - the government has some really great options to help you out. In addition to this, many cities also have special packages.
The drawback of purchasing Foreclosures and R.E.O.s is that many times they have things that will need some work or fixing. Of course - you are already paying less for the property though!
This is really an exciting time for an investor!
