Jeff Adams tips for Foreclosures Property – Seeing the profit signs. Yes this sounds pretty familiar, you’ve been probably hearing a lot about this. Almost every newspaper, program or mom – and – pop investor has been gossiping on and on about this. You will be hearing a lot of statements such as foreclosures are highest this year, real estate not what it used to be! or you’ll just have to wait it out for the right time!! Or about someone’s uncle or aunt who’s property was recently foreclosed.
I always have a tendency to term such things as Uttering Mutterings!!. Such gossip is bound to circulate; it’s what people do best, but trust me when I tell you that where the whole world is blinding themselves to real estate therein lies the golden opportunity. This is the time to beat the trend, to put yourself one step ahead of the rest, yup it is time to invest in that very.
Foreclosure happens when an individual has bought property through mortgage loans. There are chances of certain events such as divorce, relocation, plain default etc whereby the owner is unable or unwilling to further payoff mortgages. In such a scenario the money lender acquires possession of the property which is termed as it’s.
Most cases the lender is unwilling to take assets on to his books and is willing to sell or auction off the property to make up for the loss because of the default. Better still they are so eager to remove this property from their hands that they are willing to let go at a discount.
A Good Sign
Now consider the economic scenario. With prospects slowly but surely brightening you can easily anticipate a more productive healthy economy. Real estate for that matter has a lot of dependency on the economic scenario. Meaning that if the economy is good so will be real estate and vice versa. Voila!! And there you have a profitable trick, buy currently when cheap and put it up for sale when demand and price both are high.
Interest Rates: Another Good Sign
Now you might be wondering where did interest rates come into the picture. Well apart from being the price to borrow money these mere numbers can decide further demand for properties, which will indirectly influence the prices. Hence interest rates play a pivotal role in any good investment and can play spoil sport if not factored into your equations.
We have been seeing low interest rate for quite some time now. How much do you earn on your bank deposits? Not something to write home about is it? exactly the point. These low rates make people shift their money elsewhere to earn higher returns on their investment. Also you’ll be seeing an increase in borrowing as money is cheap to come by.
Now both of these factors are sure shot signs of two things firstly the architects are trying to breathe some life into the economy by readily making funds available for increase in business ventures which will promote jobs and the like propelling our economy back into orbit. Secondly this will divert a lot of capital towards property. Now you can almost bet on property rates rising in the near future.
Warning signs
All this is good, but if we don’t hurry it won’t be good for long. There’s a saying in economic theory which says that profit are like lighthouses in the dark damp sea, every ship can is drawn towards it. But what’s coming are the warships, hedge funds now these financial junkies will make sure that investors like you and me are going to miss out on the game because all the seats are booked.
Hedge funds have the ability to buy a few block worth of properties without breaking a sweat. Now where one hedge fund appears you can be sure the rest will follow suit and your kicked out of your own city. But their appearance is also a good omen. For it means that we have come to the same conclusion that the technologically swift and financially emasculated boys have come to, and that means we’re heading in the right direction.
