Is now the right time for Buying in Real Estate ?
It seems that quite a few people some of which have purchased Homes and Vacant land before, As well as some who have never owned property are waiting for the total collapse of our economy to feel they have gotten the best possible price, The fact is that right now is probably the best time in recent history to purchase property. Of course the problem is getting a loan from the very people who started the Housing bubble in the first place.
Its the Lenders of money trying to shore up and cover the very bad mistakes they themselves brought about by lending money to people in hopes of making them "slaves" to there Homes, By increasing the payments over a few short years by in some cases double or more the original amount of there monthly payment, And to make sure they made money on the deal they came up with "PrePayment" penalties of six or more months worth of payments in effect taking away any hope gaining any equity in the property to cover the ever rising monthly payment with the promise of refinancing before the increase took effect. This whole housing collapse can be blamed on the greed of the already rich institutions trying to find more ways to become even richer by building the hopes and dreams of working class Americans and then blaming those same people for taking the bait and signing on the dotted line.
The end results here were at the very least predictable from the beginning, You can not increase your monthly income within three years enough to cover an increase in your mortgage payment of several hundred dollars, But that is just the tip of the iceberg as we all know the bubble was brought on by insiders buying property and increasing the price double digits and then reselling to make thousands of dollars in a few short months or in some cases Days, Having buyers lined up to buy and going out to find properties to purchase themselves then turning around and calling the waiting buyers to sell the property to them while still in escrow.
This last few years will go down in history (Again) refer to the Savings and Loan collapse as the years of BIG BANKS taking over all control of all the Money in our Country and in effect making it so we will only have a few choices for our Banking needs. J.P Morgan (Chase), Bank of America and a couple others will be our choices.
Right now the interest rates are at a 10 Year low hovering around 5.67 to 6.25 and as sure as we are in this slump once the Banks gain the positions they have as goals #1-2-3 or whatever, They will start to increase the rates again and at that point the sky is the limit. If you can do it now you won't be sorry you did because with-in the next two years as sure as I'm sitting here today the interest rates will be at 8 to 9% That's just my predictions and is not supported by anything more than my own gut feeling. (But I would bet you a quarter I'm close with that guess) .
If you have a credit score of 650 or more there is money available for you to purchase a Home and if you are smart you will get off the Fence and really try to buy now because the short sell and pre-foreclosure properties available today have forced all the sellers to look at prices equal to what they were in 2003 before the crazy balloon started. I have taken several properties including my own and started with the year 2001, By increasing the property 6% a year ( Which use to be the norm. in the regular market) I come up with prices equal to today's asking prices. So if you have owned your Home for 7 years you still have about a 6% return on the investment over time in a normal market.
That makes Real Estate the solid investment it has always been and will continue to be as proven in the past with "Real Estate Time Heals all".
Your Thoughts ?