I WILL be holding a buyers seminar January 26, 2013 in San Marino CA, please call to reserve seats.
I did a research for my buyers seminar and found out a lot of amazing stories of investors making huge amounts of profit flipping properties the past three to four years. My 2012 calendar give away has a quotation from Albert Einstein quoting “Out of Clutter, find Simplicity. From Discord, find Harmony. In the middle of Difficulty lies Opportunity.”
In every bad there is something good. Investors were having too much fun and making too much money on the down turn of the real estate market. Homes were being bought cheaper than if you were to actually build them yourselves. Investors picked up on it quiet aggressively and make huge profits.
They made lucrative side-jobs and even entire businesses off of buying up homes and selling them a year or two down the road for worthwhile profits.
Sometimes, they put some effort into remodeling the houses and sometimes they wouldn’t. But either way, they knew they were going to make a buck off of the deal.
Real Estate prices have gone back to when we were in the early 2000s’. Somewhere around 2002-2003 it is slightly improving and very slowly showing signs of appreciation. However, one of the major driving forces to why property values seem to be going up is due to very low properties in the market for Sale. The majority of homes for sale are still dominant in the foreclosure and short sale side of the equation, although more retirees starting to come out but the playing field is still uneven. How do even that out is by bringing out the so-called “ Move Up buyers” meaning, these are homeowners wanting to sell so they can buy a better and bigger home. That will replenish the market with low to medium price homes and increase sales in the next tier of Real Estate Prices.
So far we don’t see that happening yet, hopefully when consumer confidence are higher home sellers will come out to test the market and buy bigger homes. That will then create a trickle down effect on the entire Cycle that will really push the economy in the right directions.
My comment is that these prices are not inflated but moving along according to what the market is demanding. The medium price homes have shown better sign of recovery while medium to high-end homes (not top tiers) might actually see some decline due to job instability in the economy.
Some say we might hit a double recession
Just because nobody wants to touch the housing market doesn’t mean it isn’t worth looking into, because there are plenty to look at. Contrary to all of the rumors of double and triple-dips in real estate prices, there are actually numerous signs to indicate that the dipping – at least the significant kind – just might be over. And, in fact, signs of a rebound are popping up all over. We covered these earlier, but we’re not the only ones to notice…
A very solid foundation for a very real recovery
House prices are cheap right now. At an average 30-plus percent below their peak, buying a home is a bargain in just about any area of the country. In fact, in many cities, it’s even more affordable to buy – taxes and all included – than to rent. Better yet, borrowing costs have been recorded down around 20% year on year and mortgage rates hit an all-time low in February.
There are so many added incentives for people to take up their piece of the American Dream these days – complete with white picket fence should they so choose – that it’s practically a tragic shame not to act on the chance.
That’s from a buyer’s perspective. But as the previous points show, there’s an even stronger case to be made from an investor’s standpoint.
I believe the facts show just the opposite. They show now is a fantastic time to buy a home. Prices are cheap. And with record-low mortgage rates, housing is now more affordable than ever.
So, if you want to buy a house, we think now’s a great time to do it. But there is another purchase that you can make that will give you a much more diversified real estate portfolio: A real estate ETF.
Better chances of a Loan Modification
Yes, I believe the lenders will do more to try to resolve the delinquent mortgage borrowers and help them modify to a better rate and payments. I am still not seeing loan balance reductions for first mortgages, but more loan modification approvals.
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Thanks so much for your inquiries and comments, please call Ken Go of 1st Innovative Finance Group at (562) 508-7048 or write to [email protected]. Remember to reserve seat for the buyers Seminar about the REAL Market and Financing. I will also entertain a one-on-one discussion on how to loan modify and do a short sale.