The last year or two has been quite rough for the real estate market. 10% unemployment makes it hard for people to avoid home foreclosure if they lose their job. Yet, the conditions might still be right for investment.
Even though the economy is struggling right now, that doesn't mean this isn't the right time to invest in real estate. It might sound foolish, but perhaps for some one man's misfortune is another opportunity for you. With the Federal Reserve keeping lending rates low and a glut of foreclosure properties on the market, smart investors are looking twice at real estate again.
Said one real estate blogger from http://forclosedhouses.org/
He continued, "What is happening now is a kind of perfect storm for the smart real estate investor. Loan rates are below 5%. That's just plain outrageous. If you can grab a property at 50% discount and borrow with 5% interest rates, you can probably rent it out and still come out ahead. In a few years when the market comes back, you can sell for a nice little windfall."
This of course is not without risk. There is nothing to say that the real estate market is going to come back. Unemployment is still high and many banks just don't want to lend out money. That is going to probably keep most riskier investors with lower credit scores away from these opportunities. For those who have a great credit score, the opportunity might just be tremendous.
For more information on buying foreclosed homes during the recession, go to http://forclosedhouses.org/
