Investors Attracted to Bargain Basement Prices For Bank Owned Foreclosures.
For a growing number of investors, Detroit's housing slump is seen as an opportunity to implement the well worn maxim "buy low and sell high". This does not mean taking a short term view but instead focusing on what happens when house prices eventually rebound. Could this be the path of enlightenment for the savvy investor?
Out of state and even out of country real estate investors have made their presence felt in the troubled Detroit area housing market. Estimates are that up to 80% of houses sold in Detroit are being bought by investors. A growing percentage of sales are in bulk where bundles of houses are sold together.
The Detroit Free Press reports that "Sales were up dramatically in Detroit in February, rising 49% from a year before." A large percentage of houses currently on the market in Detroit are owned by banks that foreclosed on the previous owner. In a witch's brew of high unemployment, rising inflation and falling home values, it becomes increasingly difficult for those selling houses to get their asking price.
On the other side of the equation, buyers are experiencing previously unheard of low prices for houses. Want something for under $10,000? Realtors can show you thousands of properties in the area that fit the bill. Looking for fixer-uppers that are ready to rent after cosmetic repairs? Likewise, Detroit is where you want to be.
To avoid the sometimes significant downside of investing in low end properties, investors would do well to establish relationships with real estate brokers that specialize in bank owned foreclosed properties. Two helpful websites that deal with real estate specifically are http://www.realtor.com/ and http://www.activerain.com/. Do your homework online beforehand and the chances of a profitable real estate experience increase exponentially.
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