IS NOW A GOOD TIME TO INVEST IN A HOME MAYBE TO RENT OR RENOVATE AND SELL WHEN THE MARKET RECOVERS?

Looking during the townhouse in Cumberland MD for $39,000, stream reside pays 310 the month. Considering removing the loan as well as remodeling afterwards renting or remodeling in the couple of years after i save the small bit some-more money. Either approach i would be shopping it as an investment as well as awaiting so sell for distinction in reduction afterwards 4 years. Is right away the right time to do this?

{ 4 comments… read them below or add one }

Michael M September 28, 2010 at 9:23 am

well just be aware it could take a lot longer than 4 years for house prices to start appreciating. There’s plenty of examples of areas where depreciation or 0 appreciation occurs over one or two decades.

Etta P September 28, 2010 at 10:20 am

Investment properties are requiring a large down payment (approx 30% of the purchase price) and full qualifying loan programs only due the risky nature of investment properties.
Depending on where you live, fair market values have pluminated. Some are in distressed markets in that case ma financing would not be available, meaning you may even be required to put more down payment into the transaction. Hope this helps

Older_Wiser September 28, 2010 at 11:15 am

I feel they have it priced just a bit high for the rent it is bringing in. In todays market, I would bet they would jump at an offer of $33,000, and may actually take a lot less than that. Nothing is moving in real estate right now and anyone wanting to sell needs to be ready to deal in order to sell. If you buy it, just make sure you do not overimprove it. i.e. make it worth substantially more than the surrounding properties. It is very difficult to get your money out of an overimproved property and in this economy, probably near impossible. Four years may not see a whole lot of appreciation. Instead of flipping, view it as a long term investment and just put into it what you need to for routine upkeep. Now is an excellent time to buy real estate, a buyers market. You can pretty much name your price. I think that Warren Buffet’s strategy of “buy when others are selling” not only applies to stocks but to real estate as well. As an example of this buyers market, I recently purchased a luxury condo in Florida for 1/5 of its 2004 value. Within ten years (probably less) I expect it to rebound to its 2004 value, a 500% increase.

Gerald September 28, 2010 at 11:46 am

Sure–as long as you qualify for the mortage loan—or do you plan on paying cash

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