With the continued drop in the value of the dollar, the crazy increases in the price of oil, and the wild ride in the downward-trending stock market, a safe haven for investment dollars is becoming harder to find. More and more investors are turning to real estate as an alternative investment.
In the last few months I’ve had an increasing number of clients expressing interest in investing in foreclosures, not for short term “flips” but for a longer term “buy and hold” strategy. Reacting to daily local and national press coverage focused on problems with high prime mortgage loan defaults, increased unsold home inventories, and decreased home values, many savvy investors are now taking a hard look at the up side of the current market. To support this growing interest, a number of relatively new websites like HudExchange have sprung up.
If you are thinking about adding a purchase in real estate to your investment portfolio, you might want to check www.HudEx.com for listings in your area. This is the time to act while the prices of many properties are near or approaching bottom, and while interest rates are still attractive. No one really can forecast if and when we are at “the price bottom”, but one thing seems to be pretty certain, and that is the current interest rates, presently at or near historical lows, will soon begin to go up.
Be careful, do your homework, and deal with a knowledgeable Realtor who knows your real estate market. Don’t wait too long to start looking, or you might miss out on the best part of the next real estate recovery cycle.