In these times of economic slowdown, every kind of industry is registering uncontrollable losses. Real estate industry can’t be far behind. For the owners of multistory buildings, apartments, condominiums, and the like the difficult times have just come in. The ready-to-move-in properties are readily available and that too at unbelievable prices, but the buyers are missing, chiefly because of reduction in salary and shortage of jobs. In such a scenario, if you have adequate resources of funds, then without any further delay, you should make an investment in real estate. Here are some useful tips on how to invest in real estate.
What are some reliable sources of good properties?
There are basically three sources of inexpensive properties viz. first, are those houses that were purchased at an exorbitant rate. Due to recession, people are either losing their jobs or their salary is being reduced. In both the cases, it becomes unusually difficult to pay back the loan. The only way left for these homeowners is to sell off their property at a very low price. If you get to know about such a property, don’t miss the opportunity, and grab it with both the hands.
The second source of cheap, but extremely good properties is the banks and mortgage lenders. These financial institutions have innumerable foreclosure properties. The main objective of such institutions is to write off all the bad loans at the earliest. For this reason, foreclosure properties are available at affordable rates.
The third source of low-priced properties is builders. At the time of real estate boom, these builders built condos, apartments, houses and so forth on every available piece of land. All these new properties were high-priced and in good times, people had no qualms in buying them. However, with the advent of recession the mindset of the people has also changed. There are no buyers now, and the builders are feeling the heat. In distress, they are ready to sell the buildings in an exceedingly low rate.
How to get the property of your choice effortlessly?
Even if you have a large amount of cash, then too go for a home mortgage loan. There are two reasons for this, firstly, keep your savings for hard times, and secondly, take advantage of amazingly low interest rates, which are expected to fall down further. Prepare an expenditure plan, get a pre-qualification letter and start looking for properties that fit into your budget.
Begin with foreclosure properties because they are the easiest to deal with due to the legislation that was recently passed and that has made short sales regulations and procedures reasonably easy. After foreclosure, go for the second sales. This is easy particularly if the seller does all the requisite paperwork quickly. The last on your list should be the builder owned properties. Go for them only when your attorneys, real estate agents and other people are ready to help you out.
What are certain important things that you should keep in mind?
Hire a reputed Title Company and get the Title Deed verified. Validation of Title Deed is essential because it helps you to ascertain whether the seller is the true owner of the property or not. The Title Company will also help you to find out all the legal and financial problems associated with the property. Consult your attorney, he will help you to understand the seriousness of the litigations pending against the property and he will also make the closing process easy. The last most important person on your list should be the mortgage lender. He will not only finance your property, but he will also take care of the annual property tax and homeowners’ insurance premium.