We all know that the property market hit the wall a few years ago. Many investors in real estate lost serious coin and many homeowners who got into the marketplace for the 1st time are now "underwater" and owe much more than their homes are worth. And everyone knows what the estate collapse did to housing prices not to mention the construction and home building industry.
It all left many individuals, stockholders and householders alike, feeling shell-shocked and fearful about ever making an investment in real-estate again.
Yes the housing market has been "adjusting" to say the least, but it's not anything that hasn't occurred before. And although it happened before somehow life went on and investors and householders started to see their investments grow again. And some stockholders who knew when to buy after a prior "collapse" went on to make masses of cash and become made.
Well it may be that time again. The time when getting into the real estate market will mean a chance to get a high profit on your investment... Again.
And for current homeowners who purchased say 15 years back, and observed from the sidelines as their homes doubled in value or so they thought. Some people got off the sidelines and took out home equity loans against this illusionary "profit" and now owe more than their houses are now worth.
And if you stayed on the sidelines, and didn't do anything, you're now fine although watching that home go down in price was as depressing as it was stirring to watch it go up in value. Now you are just in a waiting mode and praying that your house values will go back up.
Of course, they will. They always do. It is simply a matter of patience.
But while home prices are down this is a wonderful time to get back into the property market. Naturally, it still is frightening, and the economy is improving so slowly that you may still be shell-shocked and scared to do anything.
But it's a great time to do 2 things....
Remortgage Your Home
Now this is not precisely buying a new home, but it could have a similar effect to getting a good deal on a new home. If your current mortgage is over 7% interest then today's dazzling mortgage rates are an opportunity to save some money.
Think about it...
A $200,000 loan at 7% for 30 years will cost $478,000 over the life of that loan.
A $200,000 loan at 7% for 30 will cost $323,000 over the length of that loan.
That could be a savings of $155,000.
If you do the loan for 15 years at the same rate it will cost $257,000.
That sure is a savings of $221,000.
Pretty big savings don't you think?
Get A Short Sale or Foreclosure Home
With today's marketplace there's many occasions to buy short sales and foreclosure houses. Someone's loss can be your game... As gloomy as that is.
But it is true.
If you can find a good realtor who understands the short sales process then you may be able to find deals that were unheard of in the last 30 years. Just be sure you also know a good real-estate attorney to help in the negotiations. Banks are still a bit tightfisted and take a very long time to put through short sales.
But if you have the talents and the patience you can get the deal of a lifetime.
It all left many individuals, stockholders and householders alike, feeling shell-shocked and fearful about ever making an investment in real-estate again.
Yes the housing market has been "adjusting" to say the least, but it's not anything that hasn't occurred before. And although it happened before somehow life went on and investors and householders started to see their investments grow again. And some stockholders who knew when to buy after a prior "collapse" went on to make masses of cash and become made.
Well it may be that time again. The time when getting into the real estate market will mean a chance to get a high profit on your investment... Again.
And for current homeowners who purchased say 15 years back, and observed from the sidelines as their homes doubled in value or so they thought. Some people got off the sidelines and took out home equity loans against this illusionary "profit" and now owe more than their houses are now worth.
And if you stayed on the sidelines, and didn't do anything, you're now fine although watching that home go down in price was as depressing as it was stirring to watch it go up in value. Now you are just in a waiting mode and praying that your house values will go back up.
Of course, they will. They always do. It is simply a matter of patience.
But while home prices are down this is a wonderful time to get back into the property market. Naturally, it still is frightening, and the economy is improving so slowly that you may still be shell-shocked and scared to do anything.
But it's a great time to do 2 things....
Remortgage Your Home
Now this is not precisely buying a new home, but it could have a similar effect to getting a good deal on a new home. If your current mortgage is over 7% interest then today's dazzling mortgage rates are an opportunity to save some money.
Think about it...
A $200,000 loan at 7% for 30 years will cost $478,000 over the life of that loan.
A $200,000 loan at 7% for 30 will cost $323,000 over the length of that loan.
That could be a savings of $155,000.
If you do the loan for 15 years at the same rate it will cost $257,000.
That sure is a savings of $221,000.
Pretty big savings don't you think?
Get A Short Sale or Foreclosure Home
With today's marketplace there's many occasions to buy short sales and foreclosure houses. Someone's loss can be your game... As gloomy as that is.
But it is true.
If you can find a good realtor who understands the short sales process then you may be able to find deals that were unheard of in the last 30 years. Just be sure you also know a good real-estate attorney to help in the negotiations. Banks are still a bit tightfisted and take a very long time to put through short sales.
But if you have the talents and the patience you can get the deal of a lifetime.
About the Author:
Rick Hart is a web business advisor. He provides tools for short sale barristers in Tampa that help with loan modifications, short sales and repos.