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San Diego real estate library
How To Make The Real Estate Recession Work For You
Surprisingly enough ,this real estate recession is getting so
down that many Americans are paying more on their mortgages than
their homes are even worth! Clearly, this is the worst state our
economy has been in since the Great Depression.
Developers in many areas have gone bankrupt, even large
developers that seemed solid and structured. There are hundreds
of different sub developments scattered all over the United
States that have been left unfinished. There are thousands of
new construction homes that are either in the process of
construction or have never been resided in.
On top of that, there are more existing homes on the market than
there are buyers. Many of these homes have gone into foreclosure
because the owners lost their job in this blighted economy.
Things truly look bleak.
In order to try to resist the nation from falling directly into
a recession, which it already has although many politicians are
denying it, the Federal Reserve has systematically decreased the
interest rate for home mortgages. Home mortgage lenders are so
desperate to make loans that they are calling people that they
made loans to years ago in an attempt to try to get them to
refinance. There was a time when people who wanted to refinance
their homes could not get through to a lender.
What does all this mean to you? It should mean incentive. The
interest rates are low and so are the housing prices. That means
this may be the best time to buy and buy cheap.
Everyone needs a place in which to live. You can take advantage
of the low mortgage interest rates as well as the abundant
foreclosures on the market and buy a home to rent to a tenant.
The tenant will pay you rent in the amount that covers the
mortgage, insurance and any property taxes. If possible, you can
make a few extra dollars on the side. This can be put towards
repair of the house in case the tenant ruins the carpeting or
walls.
You should require a security deposit and credit check from the
tenant. This way, you will have some security that the tenant is
of good character and will most likely pay their rent on time.
You should have a bit of an understanding about lease laws in
your state in case the tenant does not pay their rent so that
you know the eviction process.
Renting to tenants can be a profitable way for someone to make
money in real estate. You get to hold onto a piece of property
for a long term basis, watch the equity continue to grow and
someone else pays your mortgage. And this is the greatest time
of all to get into this sort of real estate investment.
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