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Is this a good time to buy investment property?
Jack W. in Tampa, FL asks:
Stephen, property values in my area have really been hit hard. Currently, there are several foreclosed houses being offered at 50% of what they sold for two years ago. Is this a good time to buy investment property?
Jack,
That is a tough question to answer, as there are many variables to consider.
First off, what type of real estate investment are you looking to make? The days of house flipping for quick profits are over. If you’re trying guess the bottom of the market in hopes of turning the house quickly, you’re playing a dangerous game.
There is no doubt that real estate values will be sluggish for some time. If you plan on renting the house and generating income, you’ll need to study what the current rental rates are for the area, as they may be depressed as well. But if you’re buying for long-term appreciation, you will probably be safe.
Just remember that the right house at a good price will make you more money in the long run, than the wrong house at a great price. Stable neighborhoods in good school districts are always your best bets.
Stephen
If you have a question that you would like me to answer please email me at Stephen@katzmortgageteam.com.
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