Foreclosed homes are a buying opportunity if you have the cash. For some investors, speculators and first time home buyers are thinking big and finding opportunities in plummeting home prices. A gold lining in the Golden State’s housing crash.
According to the The News
“For many young couples, plummeting prices and near record-low interest rates make it possible to own a home in California for the first time.
Investors and real estate speculators, meanwhile, can snap up foreclosed properties on the cheap to sell during the next boom in California’s boom and bust real estate cycle, a boom they believe is inevitable and possibly not far off”
“This is a buying opportunity of our lifetime,” said Bruce Norris, who heads an investment group that expects to purchase 100 homes in Southern California.”
The article mentions the group buying a home for $55,000 that originally was worth $360,000 at the top of the market, putting $30,000 into it for repairs and renting it $1,200 a month. I would say that’s a fantastic investment.
I know an investor who bought homes during the last real estate downturn. He bought thirteen homes and turned them all into rentals. When his company told him three years ago that they were moving to Texas and if he wanted a job, he would have to move there. He’s still here, doing well living off of the income from his rentals and building a new home in Lake Tahoe.
Yes, now is the time to buy, if you have a secure job or money to invest, if you want an investment that has proven time and again that you can become wealthy buying real estate.