First thing, do not expect to purchases houses in New York similar to the low prices advertised in states like Miami, Georgia, Detroit or Texas!
Interest rates are at record lows and the stock market looks too risky for small investors, therefore many people are putting their money in an asset they understand — Real Estate.
One of the best places to invest money is in Foreclosures and Bargain Residential Real Estate.
The current market conditions make it a perfect time for a small investor to purchase one or more foreclosure properties for their private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that foreclosure homes are only available in crime-ridden areas is untrue.
Foreclosure homes bought in good areas at below market values that appreciate annually can be a sound investment strategy for many investors.
The appreciation of the home is tax-exempt until the home is sold. If the home is a primary residence, the appreciation may be tax-free.
Homes used as rental properties give most investors valuable tax deductions while the house increases in value and builds equity. With many stock portfolios down, foreclosure real estate investing is the alternative many people are seeking.
Important! Every amateur investor will need to hire a team of real estate professionals to guide them through the buying process;
- Real Estate Buyer’s Representative/Agent
- Home Inspector
- Bank/Mortgage Broker