Not a week passes that I do not have a client say that he wants to get into a foreclosure and that he is looking for a great deal; as if the words are synonymous. But are these the best deals on the market? A few years ago, there was a good chance that snatching up a foreclosed property was a good deal. There could have been a death, divorce or a job transfer that could have made this particular property in a particular neighborhood, a good deal. But what about when in a neighborhood consisting of 100 homes has approximately 40 on the market with 35 of them in foreclosure; think there are any good deals there? A home being in foreclosure does not mean that it is selling for less money than it’s worth and therefore has equity. Sellers are foreclosing on homes owing more than the homes are actually worth. So yes, the home will be in foreclosure but not with equity. When looking for a good real estate investment, you must always do your homework, paying close attention to the part of the current real estate cycle your market is experiencing. Houston is definitely the place to invest; however, we are in the cycle that is great for long-term investments like rental properties and apartment buildings, which produce a comfortable ROI, not necessarily quick, short-terms gains seen in recent years with flipping.
Monthly Archives: June 2009
We all have heard of the $8000 tax credit for first time homebuyers, or someone who hasn’t purchased a home within the last 3 years, but did you know about the $2000 mortgage tax credit? This credit is given your first year that your file your taxes after purchasing your home and can be combined with the $8000 tax credit. These are dollar for dollar credits that can greatly reduce your tax bill for the year and can put money in your pocket. To qualify for these tax credits, you need to purchase your home before December 1, 2009 and be within a certain salary. To see the other requirements, please read blog entries below or email me a firstname.lastname@example.org for more information.