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The best time in history to buy a US property according to Unconventional Wealth
American house prices are on the mend. In the past 12 months they increased by 4.3% and are set to increase in 2013. Which is no surprise since prices are down by about 40% from their peak.
"The Best Time in History to Buy a Home"
House prices are on the mend...
According to the S&P/Case-
And as I detail in your current Unconventional Wealth issue, long-term fixed-rate mortgage rates are so low that the bank will pay you to borrow money in inflation-adjusted terms.
This is the perfect setup.
Right now, you have an opportunity to buy a deeply neglected and out-of-consensus asset that offers ridiculous value.
In some states, the average foreclosure price is almost half the average non-foreclosure price.
It's no wonder big-money investors such as asset manager Blackstone Group are buyers. Blackstone is now the largest private real estate owner in the U.S. It's been spending a staggering $100 million a week on U.S. housing. And it has already invested more than $2.5 billion on 16,000 homes to manage as rentals.
Blackstone is doing exactly what I recommend you do – buying houses through foreclosure and short sales using dirt-cheap financing... and then renting them out.
This is possibly the best investment you're going to see this decade... and maybe in your lifetime.
Many people got burned in the housing crash. And the last thing they want to do is buy again. That has led to huge demand for rentals. This is showing up in rental prices, which were up 5.4% in 2012.
And I don't expect rental demand to dry up soon. Financing can be hard to come by. And most folks are still traumatized by the big crash in house prices. It will be years before most folks feel more comfortable buying than renting. (Which makes going against the crowd and buying now more attractive.)
A second letter I received was from paid-up subscriber Garry C. Garry is interested in buying property in Florida. But he reckons he may have hesitated too long. He fears the real deals are gone.
My own experience is different. In late 2011 I looked at a home in Delray Beach, Fla., for roughly $72,000. During the housing boom the same property listed as high as $250,000. It was a standard two-bedroom, bath-and-a-half home on a small lot in a quiet neighborhood.
And a family member recently purchased three homes in the Ft. Myers, Fla. area – for a total outlay of just over $200,000.
He now lives in one part of the year. He rents out the other two. And the rental income more than covers the money he puts aside for repairs and maintenance. Within the next two years, he'll net about $2,500 a month in free cash flow.
That's a gross rental yield of 15% a year. That's better than the best year most folks ever have investing in stocks.
From Jacksonville to Orlando and Tampa to Ft. Lauderdale, the story is the same. I urge you to act now. Florida isn't the only state on sale. In the third quarter last year there were 193,059 foreclosure sales in the U.S. And they sold at a discount of 31.81%.
There are 12 metro areas in the U.S. where you can snag foreclosures at savings of more than 45% off average market value.