Top 10 Foreclosure Cities
- Merced, California
- Modesto, California
- Stockton, California
- Riverside, California
- Detroit, Michigan
- Fort Lauderdale, Florida
- Cape Coral, Florida
- Vallejo, California
- Las Vegas, Nevada
- Sacramento, California
As the first quarter passes the markets have still contunue to decline on stock markets worldwide, capital freeze, massive financial meltdown and layoffs from hundreds to thousands at a time. With trillion of dollar assets wiped out in the past year and IRA investments loosing what was to be an aid in retirment it seems that there is no end in site during these hard times.
Now you may have heard on late night television that the housing market is crashing everywhere and we are in a recession. And that is somewhat true, especially since 60% of the top 10 are in California. However, if this is absolutly true then why does Orange County hold well in the crashing market and curently why do we have bidding wars on properties?
No matter what we all will eat, go to schools and colleges/universities, supermarkets will still be open, buses will run and most people will want to but gadgets and spend beyond their means - just not as bad as before. It is often said that some of the most successful investments have been made by going against the grain, which means selling when most are buying and vice versa. And in this market, of foreclosures, going against the grain now would mean buying while others are selling. The goal during in recent years has been to buy now, sell quickly and pocket capital gains, abut not when values are falling or stagnant. The better option in hard times is to seek capital preservation and ongoing income.
Now, imagine that during the Depression era of the 1930's those who bought real estate at sunken prices and simply held on. The importance of such of experiences suggest that going for long term benefits is a logical and reasonable strategy for today market. And given that foreclosures are often available with significant discounts, it follows that they represent a good starting point in the search for long-term income and capital safety.
Here are 5 basic questions which can help you decide:
- Can you get financing? When the rates are exceptionaly low and you go to a direct lender for a 30 yr fix, then when the market turns around for the better so will your investment.
- Can you do your own repairs? This will help aid in the reduction of the overhead on your investment.
- How's your local market? Is the inventory of unsold properties increasing? Are new home builders discounting units in established projects?
- Find an experienced Pre-foreclosure Realtor in the county you are purchasing.
- Can you afford vacancies if your renter cannot pay? If you don't have the income to support this investment then you may want to reconsider.
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