Forclosure fever

@ann168 (111)
United States
October 28, 2007 12:53am CST
With the rate of foreclosure is increasing rapidly everyday in across the states, you still think real estate is a good investment? Is real estate still an asset or liability for you?
5 responses
@adamk911 (54)
• United States
28 Nov 07
Yes I still think real estate is a good investment right now is the ideal time to buy at cheap prices to either live in or hold and repair for resale. Right now im in the process of buying a 400k house for 150k it needs a good amount of work but most of the work is cosmetic. This is going to be my first home that I own but I can do all the work myself Carpentry, Electric and plumbing so what im going to do is take over the least of the worst rooms and the bathroom and stay in there while I gut and restore the rest of the house. Will probably cost me 25 to 30k to totally redo the inside of the house. But I think and hope that it will be a equity cow in the years to come.
@ann168 (111)
• United States
1 Dec 07
You are right. However, to have a home inspection would be benefited you or consult a contractor so you can have some ideas which need to be repaired by doing it yourself or better leave it to the professional which will save your time and energy. I have tried it before and I have learned expensive lessons by trying to do it all by myself. Especially electrical and plumbing needed to be complied with the planning code in you city ,or you will be surprised and disappointed to find out later that you have to fix it again the second time to update to code before you put the house on the market. I hope you find my feedback useful. Good luck in your investment.
• United States
5 Dec 07
Thanks for the reply. Yes I have found it very useful and ive changed my plan for the house. Im pretty much walking into a house with 150k in equity so what im going to do is pull about 50 to 100k from the equity to fix the house up professionally. Ive already gotten a few estimates from 2 contractors.
• United States
28 Oct 07
I definately think real estate as an investment is totally dependant on your location!! Think about things like; how much income you have coming in each month, how muc you have to invest, always think about the worst possible outcome and if you can live with those possible burdens and what effects it would have on your family, and look at the market in your area (definately don't go in uninformed) do tons of research!! I have seen a lot of people get rich quick by flipping homes, but again only if they are in the best location and they have money to spare without terrible effects on their personal lives :) If you think about investments however, everything has its risks and real estate is something one has to have (as far as families having to have homes and most rather buying than renting) so I would definately choose real estate over something as unstable as the stock market!!
@ann168 (111)
• United States
30 Oct 07
Thank you all for responding to my question. You are right. Do your homework and research before buying. Not only the mortgage but also the loaction snd the market trend before buying your real estate. Never looking into easy to get deal because there is no free ride at all. What you pay is what you get? don't forget that.
31 Oct 07
Some understanding of the real estate cycles is helpful in this kind of market. I really feel this is the time to buy and hold...if you have the reserves built up. Of course, that's not to say that one shouldn't also be mixing in some wholesale, & retail to "dinged" credit people. I think a good mix is healthy, no matter what your financial status. With the colapse of the subprime lending there are now a lot of houses that you can get, and a lot of people who can't get easy financing. So, an investor might change his focus a little in order to keep his RE engine roaring. That's my take anyway. www.buyALhouses.com
@shak143 (1280)
• India
28 Oct 07
ofcourse realestate is a lace where we can earn more money.there is no doubt about it.but we should becarefull while investing.as there is a lot of scope to get cheated.most of people want's to earn more money by selling same property to more than once.investing is easy but maintainance is diffisult.that's the think.
@cmhcmh5 (12)
• United States
28 Oct 07
It depends. If you are able to buy a home cheaply it is probably still a good investment. If for no onther reason than the tax benifits. However, it is very impotant to do your homework first as some neighborhoods loose value even when the market is good.