Investing in real estate, like any other investment, should be approached cautiously and prudently. Wherever they invest, buyers should budget for monthly mortgage and principal payments, taxes, insurance, maintenance and unexpected repairs. According to several real estate experts, 2010 will be a good time to buy a foreclosure property as a home, an investment property or a vacation rental.
Here are 10 investing tactics that can help you build wealth and financial stability in the years ahead. (The content of this message is taken from RealtyTrac Agent Advocate; Volume 6 Issue 6.)
1. BUY SHORT SALES
2010 will be remembered as the year of the short sale. Sales of properties in some stage of pre-foreclosure accounted for nearly 12 percent of all sales in the first quarter of 2010, up from nearly 11 percent in 2009 and up from less than 1 percent of all sales in 2006, according to RealtyTrac. Many of those are by definition short sales, given that nearly one in four U.S. homeowners with a mortgage — 25 percent — owed more than their homes were worth at the end of 2009, according to First American CoreLogic.
And with a wave of more than 3 million pre-foreclosure filings predicted this year, buyers can expect fire sales holding down housing prices in many parts of the county for years to come. Furthermore, a new federal government program called Home Affordable Foreclosure Alternatives (HAFA), which started April 5, will provide financial incentives to lenders and homeowners to do more short sales. The HAFA program might make short sales smoother and faster, which could in turn make them a larger portion of all real estate transactions nationwide. But the big question remains: Will the banks want to sell at a big discount?
2. BUY BANK-OWNED REOs
Short sales can be time-consuming and difficult transactions to complete, which is why bank-owned REOs are appealing to many investors who want a quick transaction and clear title. If you’re in the market for a home, an investment property or a vacation rental, you may be tempted by the low prices on bank-owned properties, which are selling for about 35 percent less than non-foreclosed homes, according to RealtyTrac.
Randolph County has its share of both short sales and REO properties (foreclosures) available right now. If you are interested in finding out more about properties for sale in the Asheboro and Randolph County areas, call or email me today.
Stay tuned for tactics 3 – 10….
Waynette Hoover Araj
RE/MAX Central Realty
231 S. Fayetteville St
Asheboro NC 27203