Foreclosures – The Downside Of Investing In Foreclosed Homes

You’ve probably heard some real estate investment guru’s tell you that now is the best time to invest in real estate. Its dose not take a genius to figure out that the current property market is at an all time low and in may ways its in real danger of complete collapse in some parts of the country. With foreclosures happening at an alarming rate, even the banks are in danger of collapse simply because they now have to repossess properties that they cannot sell.
This is where opportunist real estate investors come in. You really can buy homes for 50% of their original value right now and since many banks and building societies are desperate to get rid of these repossessed homes Real Estate Business Articles you can find some serious bargains. To the untrained investor, the opportunity is quite obvious. You buy cheap now and wait for the market to recover and then you sell high and make millions. Right? Well, not exactly.
Its true that markets go through phases and that every downturn eventually recovers. Over any given period of time the market will go up and down. Buying low and selling high is the fundamental principle of investing and too often novice investors get seduced into buying low. Being able to sell again is a vital component.
One of the real dangers of investing in foreclosed properties is that you may have to hold on to that property for a long time. Especially now the markets are very slow to recover and many say that it can take years before the real estate market starts growing Real Estate Marketing Strategies Examples again. The question is whether you can hold on to the property and afford it until the market recovers? A “dead property” can cost a lot of money to maintain and keep up. Keep this in mind and don’t just get seduced by the cheap price tags on foreclosed homes.

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