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Real Estate As An Investment Option

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Interest rates are slowly but steadily rising. The record in "the rise of delinquent payments" last year indicates "a wave" of foreclosures that will splash onto the market this year. Mortgage rates are sinking "to record lows" and "home foreclosures have climbed to all time highs." Even though major developments forecast impending doom the current market still bodes well for the savvy well-informed investor. There are more specific options that are gaining popularity, especially with an unsure future as far as rentals and re-sales are concerned.

Viable Option in Foreclosure Market

The second home has become a viable option that makes the best of reselling and renting options in the foreclosure market, wherever maximum returns can be realized. With the current housing market prospective owners are more apt to rent property in an area before buying to get a better feel for it before they make a formal commitment. There are a lot of people who want to take advantage of "the try it before you buy it attitude." It gives the owner and the prospective buyer different options.

Why sell your second home when you can pay for its up keep by renting it out seasonably or making a bigger profit from the sale by having the prospective buyer rent the property first and get a better response to the asking price. From the Ozarks to Lake Geneva, Wisconsin California and Florida and all types of resort areas in between there are a growing need for the vacation property that wasn't previously satisfied. The "vacation rental market has seen a boost" and potential! Second home markets will continue to grow despite the downward spiraling economy.

Market is Becoming Better and Better

The housing market for buying and investing seems to look better and better despite the lingering numbers of increased foreclosures. The activity of the housing market has been "the superhero of the economy." Homeownership rates, home sales, and residential investments all reached "new highs last year."

Despite a less than great economy set backs for the majority of consumers who've worked hard to maintain their standard of living have and will spend money to relax and enjoy their free time. The same thing happened during the economic downturn of the early 80's." Americans spent more money on entertainment and having a good time to forget about the less than ideal economic reality. They saw industry revenues rise considerably. The vacation and tourism market is just one area that benefits from this diverse economic climate. There are geographical locations that benefit and have remained unscathed by the overall foreclosure "gloom and doom?"

Portland, Oregon continues to see its suburban housing developments "surge towards record highs" with the average asking price for homes rising from time to time. Just as more Americans have opted to enjoy more of their free time when they can. It's more affordable then ever for residents of the state of Oregon's metro area because it's doing considerably better as a result of a switch to an economy based on high tech manufacturing than wood production. It exemplifies how some markets will suffer because of the economy and how others won't, giving a bit of insight where to invest in the foreclosure market, a second home for investment or recreational purposes.

For second home seekers large hotels and resorts have become increasingly crowded, congested, and less personal. They find a "heightened sense of security in a single home or smaller condo complex" more appealing than the ubiquitous hotel or resort. The growth has spawned "2nd Home Living" magazine that offers information on second homes, vacation, resort, and retirement communities, both for sale and for rent.

There are many web sites match a second homebuyer with a purchaser or a real estate professional in the field called a "Resort Specialist." Many investors are capitalizing on that market. The number of "resale homes sold continues to be very strong in most cities" because of low interest rates. The consumer creates the demand for new or resold properties. Since there are more properties in default someone is going to profit. Rental or vacation property is only a new channel where a knowledgeable investor may gain.

This post was supplied by Mark Stubbles, Mark writes for McIntyre Masonry, Edinburgh.

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