How To Make The Real Estate Recession Work For You
Surprisingly enough ,this real estate recession is getting so poor
that many Americans are paying more on their mortgages than their
homes are even worth! Clearly, this is the worst state our economy
has been in since the Great Depression.
Developers in many areas have gone bankrupt, even large developers
that appeared solid and structured. There are hundreds of various
sub developments scattered all over the United States that have been
left unfinished. There are thousands of new construction homes that
are either in the process of construction or have never been resided
Aside from that, there are more existing homes on the market than
there are buyers. Many of these homes have gone into foreclosure
because the owners lost their job in this devastated economy. Things
truly look bleak.
In order to try to resist the nation from falling directly into a
recession, which it already has although many politicians are
denying it, the Federal Reserve has systematically lessen the
interest rate for home mortgages. Home mortgage lenders are so
desperate to make loans that they are calling people that they made
loans to years ago in an attempt to try to get them to refinance.
There was a time when people who wanted to refinance their homes
could not get through to a lender.
What does all this mean to you? It should mean incentive. The
interest rates are low and so are the housing prices. That means
this may be the best time to buy and buy cheap.
Everyone needs a place in which to live. You can take advantage of
the low mortgage interest rates as well as the abundant foreclosures
on the market and buy a home to rent to a tenant. The tenant will
pay you rent in the amount that covers the mortgage, insurance and
any property taxes. If possible, you can make a few extra dollars on
the side. This can be put towards restoring the house in case the
tenant ruins the carpeting or walls.
You should expect a security deposit and credit check from the
tenant. This way, you will have some security that the tenant is of
good character and will most likely pay their rent on time. You
should have a bit of knowledge about lease laws in your state in
case the tenant does not pay their rent so that you know the
Renting to tenants can be a profitable way for someone to make money
in real estate. You get to hold onto a piece of property for a long
term basis, watch the equity continue to build and someone else pays
your mortgage. And this is the greatest time of all to get into this
type of real estate investment.
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