I'm biding my time and saving up my down payment, but want to buy when the market is at its absolute worst. I'm hoping that's in the next 6 months, but am willing to wait up to a year.
Has anyone purchased foreclosed real estate? I'm hoping to get a great deal on a repossessed property that a bank just needs to off load.
2007-11-15 12:43:08 · 8 answers · asked by leedogg1981 3 in Business & Finance ➔ Renting & Real Estate
Read the business news on CNN, FOX, YAHOO etc, in the spring of 08 more that a million mortgages are set to reset to higher rates, thus more foreclosures. Would not expect to bottom out for 18 months to 2 years, will not see an increase or appreciation for at least 5 years. Unless credit is once again made available to the masses, but with the doubling of energy costs, personally, as I have stated for awhile see a recession in the making.
2007-11-16 09:45:54 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
It depends on the location. If it is an area that went way up in value, then I would say at least 5 years.
During the last down market, in major cities, prices went down for about 5-7 years. The last couple years they went down only slightly, then they were flat for a couple years.
A big problem with buying when prices are going down, even if you can afford the high prices, is that you could end up losing money if you have to sell too soon. You could pay 300k for a house next year. 3 years later you might have to sell because you got a really good job offer in another city or you lost your job or you got divorced. If prices went down 10% then you would have to cover the 30k yourself and the 18k in sales commission.
So I think it is best to wait till price declines are minimal and/or you know you can keep the house for 10 years.
If you live in a cheap area and your mortgage will be not much more than rent, then it might be ok to buy soon.
2007-11-15 12:58:43 · answer #2 · answered by heyyou 2 · 0⤊ 0⤋
Buying right now is great if you are looking to add equity and
net worth.
You need to understand that your market may not have hit bottom yet, but if you buy something worn out and fix it up,
you can probably get it for much cheaper than others
on the market, which should translate to additional equity.
Another good rule of thumb, is that if you buy at a payment
that stops you from renting it out later as an investment, you will definitely be at the mercy of the market still in one or two years.
Foreclosures bought at auction are good options, but you still
want to buy a fixer-upper, and keep payments rent able later with at least break even cash flow, minimum...
Scott C.
www.HomeCommandos.net
2007-11-15 12:56:34 · answer #3 · answered by Scott C 1 · 0⤊ 0⤋
I carry mail and I see soooomany houses foreclosed on and more that will be foreclosed on. It's an epidemic.
You can look an address up on the county auditors page to find out who owns it. Maybe contact the bank RIGHT AFTER the owner vacate and make the bank an offer.I you wait too long, the house can get damaged just by sitting the unkept.
2007-11-15 12:51:06 · answer #4 · answered by in COGNITO * 4 · 0⤊ 1⤋
Expect the housing market to begin to improve in the spring of 2008 (April on).
2007-11-15 12:52:43 · answer #5 · answered by DR W 7 · 0⤊ 0⤋
Listening to Donald Trump last night, he said 6 months.
2007-11-15 12:49:38 · answer #6 · answered by Anonymous · 0⤊ 1⤋
According to the news it happened back in August and we are on our way to recovery now.
2007-11-15 12:55:18 · answer #7 · answered by linkus86 7 · 0⤊ 0⤋
Completely bottom out? I wish I knew when it will happen...
Don't you think we'd all be rich, if anybody could tell us the exact date?
2007-11-15 13:13:46 · answer #8 · answered by REALTOR 3 · 0⤊ 0⤋