Tuesday, January 26, 2010

Foreign Investors Flooding US Real Estate Markets

The depressed prices in the real estate market are not only creating a great opportunity for American home buyers, but foreign buyers are flooding the United States real estate market like never before. The reduced value of the dollar has opened up the real estate market to international investors looking for properties to live in while they do business in the States or simply looking to cash in on the amazing value in the housing market. Properties that may have been previously out of reach have become affordable because of the plummeting values of the homes on the market and the available inventory off foreclosure properties to choose from.

Foreign investors may have an edge over some American buyers in the real estate market. In this country the inability of the banking industry to loan money freely has affected the average American’s ability to get a mortgage. The largest shares of foreign investors in American real estate are purchasing properties with cash. Those investors that finance the properties they purchase are doing so with large down payments, many times over 30% of the price of the house, making for easy loan processes and quick closings.
The prices of the homes themselves are a huge draw for foreign investors. Housing prices have dropped so dramatically in the last year or two that it is impossible for investors to turn a blind eye. In many cases investors are looking at the very same homes they had looked at in the previous 12 months and finding the prices tens of thousands, or sometimes even hundreds of thousands of dollars less than they had been just one year ago.
The opportunities for foreign investors in this housing market are immense. Not only is it more affordable for them to purchase part time residences for business dealings in the US, it is the ideal chance to get themselves a vacation home or invest in rental properties or homes to flip for profit. With the dollar at its weakest, the possibilities for building an inventory of American properties is stronger than ever before, and foreign investors are not wasting a minute of the valuable time. Property in the US is being bought up in greater numbers than in decades by citizens of other countries looking to increase their American real estate portfolio.
As the real estate market begins to stabilize, savvy investors realize that now is the time to pick up properties all across the United States. Where people had previously on the fence about making real estate purchases, the anticipated upswing in the market has helped them to decide to jump in. With the light at the end of the recession tunnel beginning to get brighter, investors understand that prices are at the lowest they are going to be because they are on the rise, and home prices on the rise means building equity quickly. Whether the purpose is to visit, stay or to invest, foreign buyers are flooding the United States real estate market. Information obtained from internet source.

Friday, January 22, 2010

House Flipping

I just wanted to let you know that FHA has lifted the hard 90 day rule that would require a seller to be on title for 90 days before the property can re-purchased from a buyer that is getting an FHA loan. This will go into effect February 1, 2010 and last for 1 year. This is huge considering how many properties we have on the market that has been acquired from investors that are flipping their properties for really good deals. There are some important issue that you will want to know if you end up making an offer with a buyer that is going with an FHA loan. So PLEASE come to me for details and we can fill you in as we go. Thanks for all of your support.

Tuesday, January 5, 2010


Predicting the future is tricky. At best it’s two parts knowledge and one part luck. If there’s one prediction everyone wants, it’s what markets will be doing in the future.
Are we there yet?— Home prices won't hit bottom until early 2010. Some say it's really just a question of absorbing the supply of vacant properties. Home prices at the national level are expected to fall another 5 to 10 percent before stabilizing.
Tax credit—Exiting home sales rose again in November as first-time buyers rushed to close sales before the original November 30th deadline for the recently extended and expanded tax credit, according to the National Association of Realtors. NAR Chief Economist, Lawrence Yun, says the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”
Mortgage rates—It is predicted that rates will begin inching up to 5.28 in the first quarter of 2010 and hitting 5.50 percent in the following quarter.
Investor activity— By looking farther ahead than next quarter’s earnings, commercial real estate companies can plan strategically to ensure success. The good news is that relatively stable cap rates and strong capital flows should keep prices up, at least for the next couple of years. Some say that for the first time in a long time, real estate is priced right relative to interest rates.
After a quiet year of investment sales, buyers are preparing to forge ahead with acquisitions in 2010. Two thirds of investors (65%) who responded to the 6th Annual Investment Survey plan to boost their investment in commercial real estate over the next 12 months.
It is clear that investors want to pursue new acquisitions. Overall, 72% of respondents indicate that they are currently amassing capital in preparation for buying opportunities.
Economic recovery—One of the few people who saw the US economic crisis coming, International Institute of Management President Med Yones, is now predicting that the economy will begin to recover in 2010.
The IIM is not a fan of expensive stimulus packages. It instead favors job creation through funding for small businesses, “The most cost effective and quickest method to stimulate the U.S. economy is to support job creation through US small businesses and innovation development. U.S. Census Bureau statistics show that 98 percent of all U.S. firms have less than 100 employees. These 27 million small businesses create over 85 percent of all new jobs and employ over 56 percent of all private sector workers. The main focus of development programs should be innovation development, export and employment support. This solution would be a much less burden on the taxpayers; it can be implemented without too much new legislation, and would have a much faster positive impact on the economy.” Information sources: Politicususa.com, Realtors Commercial Alliance, and Realtor.org