Pismo Beach, Avila Beach, Grover Beach, Nipomo and Arroyo Grande foreclosure homes and property are good investments now.
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With interest rates at record lows and the stock market looking too perilous for small investors, many people are putting money in an asset they understand — real estate.
One of the best places to invest is in foreclosures and bargain residential real estate.
The current market conditions make it a perfect time for a small investor to purchase one or more foreclosure properties for their private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part of the mix of foreclosed properties available.
But anyone considering buying a foreclosed home should forget about paying pennies on the dollar.
“You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market,” said John T. Reed, editor of Real Estate Investor’s Monthly, a newsletter based in Alamo, Calif.
Yet the savings may be twofold if the property is purchased from the lender who holds the mortgage that’s in default. That lender may be willing to waive some closing costs, maybe even offer a break on the interest rate or the down payment.
MSN 08/01/2010 By Bankrate.com
Great information. Should I wait for interest rate to drop more? I have been pre-approved with a lender.
By: Wondering in SLO on August 5, 2010
at 4:57 pm
I suggest when you find a home that you like you may want to consider making an offer. If you wait to long the home may not be available. If it a REO or Short Sale home there is good chance there are offers already.
Currently, interest rates are at record low and sometime in the future interest rates will increase. This has to occur to encourage investors to participate in the market.
Keep in mind until an offer is accepted today’s interest rate cannot locked in by the lender in for the buyer and depending on escrow time duration interest can change.
It is great time to buy with low interest rates and wonderful values prices of homes..
Call us for more info of listings available on the Central Coast
By: pismobeachrealestate on August 5, 2010
at 5:23 pm