Inventory has increased in areas across the country compared to last year. With this rise in inventory, we are entering into a Buyers Market. This allows for better leverage of negotiation for the buyer. You may be able to ask for concessions from the seller such as credits for non-recurring closing costs, repairs to be made prior to close of escrow, seller carry-back of a second mortgage or simply a lower price. Smart investors buy in markets like these to increase their profit margin.
Interest-Only, Adjustable Rate Mortgages (ARM’s) and Negative Amortization Mortgage Loans are at historically exploding numbers and are either coming due or rising in interest rate. More people are finding themselves unable to make their payments and refinancing is no longer an option. Many unfortunate owners have to sell their houses or face foreclosure. Foreclosures are up 24% from July to August and up more than 50% year over year. This puts investors in the driver’s seat.
Another advantage that buyers have is that interest rates are still close to record lows. Getting a great deal on your interest rate will allow for your investment to be more profitable.
Smart investors buy low and sell high. The correctional market we are currently in will not last. Homes values have historically risen within a few years of any past correction in the market. If you’re in a position to buy, rent and hold the property over the next few years high profits can be made.
With current fixed rate interest rates still at historic lows, a huge inventory of homes in a wide variety of price ranges, and motivated sellers, now is a great time for purchasing an investment property.
Dennis Black is the President of MyPropertyWealth, Inc. If you would like to find out more about buying investment properties please visit www.mypropertywealth.com [http://www.mypropertywealth.com]
