Everyone knows the market is a mess today. In some places houses have lost more than half of their inflated value, and with no jobs, bad mortgages, and crushing debt, all too many people are relocating, leaving a flood of empty or foreclosed homes in their wake. Contrary to what one might hear on the news or see on the television, there are tremendous opportunities to be had in the housing market. All over the world housing prices are at record lows, but populations are at record highs. It doesn’t take a financial analyst to recognize that sooner, rather than later, the market will rebound. When this happens, it will be to the financial benefit of those persons in a position to use their personal finance to profit from home foreclosures.
Banks are in big trouble. They’ve lent out far more money than they ever had to begin with, and they lent it to people they should never have been doing business with in the first place. Now banks are collapsing all over the world and people are so desperate you might think they would give their homes away just to make it end. The truth of the matter that is all too many people were either misled, or knowingly entered into mortgages that their finances simply couldn’t sustain. These circumstances are most certainly unfortunate, but for one who managed their finances properly, now is the opportune time to buy.
In many cases careful searching, combined with newspaper advertisements and other marketing tools, will give notice to homeowners facing foreclosure that you are available to purchase their home. While most, if not all of these people will be selling their homes at a loss, they will still have enough credit, thanks to your assistance in purchasing their mortgage, to allow them to buy a new home that they can afford to maintain the mortgage.
When using personal finance to capitalize on profitable home and mortgage foreclosures, it is important to remember that proper financial management and fiscal responsibility is what has enabled you to be in a position to make these purchases. Maintaining that awareness, and carefully observing the mortgage foreclosure market, you can turn tremendous profits, significantly increasing your wealth. Some key things to look for in mortgage foreclosures are:
- home construction – the construction of any home you purchase should be high on your list of priorities, as poorly constructed homes will fail essential inspections, and be more difficult to resell when the market rebounds
- home location – perhaps the most determining factor of a home’s value is its location
- home maintenance a home in good repair will require less ongoing maintenance and be easier to sell as the market stabilizes
- home neighborhood – the neighborhood of any home is also an important consideration, as even the best homes are worth significantly less in poor, or lower-income neighborhoods.
Armed with these tools and this knowledge, it should be a simple matter of applying your financial expertise to an aggregate of past, current, and expected future market conditions in order to turn a handsome profit.
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