Apr
23
is now a good time to invest in a home maybe to rent or renovate and sell when the market recovers?
Filed Under Do It Yourself (DIY)
Looking at a townhouse in Cumberland MD for $39,000, current tenant pays 310 a month. Considering getting a loan and remodeling then renting or remodeling in a few years after i save a little bit more money. Either way i would be buying it as an investment and expecting so sell for profit in less then 4 years. Is now the right time to do this?
Comments
4 Responses to “is now a good time to invest in a home maybe to rent or renovate and sell when the market recovers?”
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.
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
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.
Sure–as long as you qualify for the mortage loan—or do you plan on paying cash