Surprisingly enough ,this real estate recession is getting so bad
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
appeared 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 lived in.
In addition to 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 keep the nation from falling directly into a
recession, which it already has although many politicians are denying
it, the Federal Reserve has systematically lessen 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 restoring the house in case the tenant ruins the
carpeting or walls.
You should ask for 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 knowledge 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 increase and someone else pays your
mortgage. And this is the best time of all to get into this sort of real
estate investment.
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