Foreclosures Mounting , Banks Stable… Should We Invest?

Is real estate still a good investment with record foreclosures? Would we be crazy to get into this market now?

Bee and FlowerIs it still a buyers’ market?

 

 

“Wisconsin as a whole had 9,229 [tag-ice]foreclosure[/tag-ice] fillings in the first half of 2007,

 

up nearly 23 percent compared with 2006, a year  in which [tag-self]foreclosures[/tag-self] jumped 34 percent,

 

according to newly released data compiled by ForeclosureWI.com, a provider of Wisconsin foreclosure resources and statistics,”  reports the Business Journal of Milwaukee, July 10, 2007.

 

Here’s another quote from Inman News

 

“Lenders sent California homeowners the highest number of mortgage [tag-tec]default notices[/tag-tec] in more than a decade during the second quarter,

 

the result of flat or falling prices, anemic sales and a market struggling with the excesses of the 2004-2005 home-buying frenzy, a real estate information service reported.”

 

 Last but not least…

 

“What we’ve learned since early this year is that a lot of the subprime mortgage paper is not as good as was thought originally

 

and there are clearly going to  be significant financial losses… associated with defaults and delinquencies on these mortgages,”  US Federal Reserve Chairman Ben Bernanke said last week.

Okay, but what if property values go down?

 

I believe that depends on the area.  As always, real estate investing is local.

 

Moody’s, the rating agency, reports banks across the country are riding this financial event out well and are on good solid ground.

 

Five security firms, Bear Stearns, Goodman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanly were specifically mentioned.

 

Another way of putting it is real estate is still a very good investment.

 

So what is our conclusion?

 

The deals are out there.  Go get them.

 

As always be cautious and use good common sense.

 

Know the areas where you’re putting your money.  Are they over-built such as Miami?

 

If so, you’d have to have much deeper pockets and be a long term  investor in order  to be able to hold out longer.

 

However, there seem to be too many good deals for investors who can go in, prepare the properties and turn them around after this market subsides.

 

But the real winners for now are the buy-and-hold investors who are collecting real estate for their property portfolios.  If you’re one of them now is your time.

 

Read More   Us Housing Difficulties Cause for Concern but no systemic Threat: Moody’s

Read More   Wisconsin’s Foreclosures Up 23 percent

 

 

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