Positive Real Estate Professionals

Today, so many actual buyers are put off from the housing and mortgage crisis that it is keeping them off the buying market. The problem that is with this very thought is the fact that the market is saturated with great buys at this moment. On top of that very issue, mortgages rates are a historical low.

Let’s take a moment to take a look at what is driving this type of market. The first driving factor is the increased number of foreclosures. This is typically being driven due to people buying homes using a 2, 3, or 5 year Adjustable Rate Mortgage. What compounds this even worse are the people that used the Pay Option Arm to get more house than what they can afford. The problem is not actually these types of mortgages. The problem is that people did not have a plan on how to get out of these types of mortgages.

Now, with so many of these mortgages getting to the adjustment period, some of them can go up as much as 1.5 to 2% higher than the original amount. The big issue with that is the home owner has not increased in income enough to compensate for the higher mortgage. In this case, the property owner starts to fall behind and starts to lose the home.

So, that gets us to where we are today. A house is awaiting for the right buyer to become a home. In that time, there is a gold mind out there for investors that are not looking for a quick buck. If you are an investor that looks at the long term, then buying property in today’s market is a smart investment. There will be a lot of people that are looking for rental property due to the fact that they can not buy for 3 years. Having property that you can rent out or even place on a “Rent to Own” basis, people will flock to you.