Peter Pays Paul

How do you feel about the current fears regarding sub prime loans?

Only yesterday, Bear Stearns shook the markets with fears of losses resulting from risky home loans.

A high proportion of investment properties are held by inexperienced investors who do not have their finances in order. When these guys are forced to sell, fear could cause the markets to fall even further.

Here’s a related story:

http://news.independent.co.uk/business/news/article2782541.ece

I have to agree with you 100% Some of the best deals can be found when everyone is running off elsewhere to invest. There can be many “gems” left behind if you have the right investment team in place.

Haythem – I agree completely. However, I would be cautious making short-term bets (flipping) on the value of a home.

John – For interested home buyers this market correction is a chance to get a discount on a really nice home. But the time frame needs to be more than a couple of years as I stated in my post.

Thanks for stopping by.

Being a buyer in this market is absolutely great. However; have we hit the bottom? Only time will tell. But make sure you ask for the world when making an offer. There are plenty of houses to buy and another one will always present itself on the market. Never be afraid to walk away. They will call you back.

I’ve just heard so many things about real estate. I’ve heard that there are more homes than there are buyers just as said above…I think that maybe there are more potential buyers than people think, but sometimes people need that extra push. Someone should create a website or something (I’ve learned a lot about websites by working with Homestead and it seems that creating websites can easily meet many business goals) for each city with links to all the realtors and all the properties and listings for that city. It’s important for potential buyers to see the listings and the pictures and stuff because if they see something they really like, they might go for it? I think people just need that extra push at times.

Where is the best place to buy the U.S. right now? I have heard some people saying that the market has not yet to hit bottom so is it worth waiting or are there some market starting to recover? I am from Canada and our real estate market is starting to feel the effects as house prices have been dropping the last few months.

Real estate is hands down the best investment you can make. I started investing in local real estate a while ago and damn has it paid off. It requires a large down payment investment and requires you to learn about the market but it’s one of the safest investments you can make in todays market.

It is interesting to read this blog 1 year after it is posted. The caveat of holding the property for at least 2 years is a good one. At least, its shown that 1 year on and we’re still nearing the bottom of the market. It should take at least another 1-2 years to show signs of recovery.

Yes I so agree with Singapore Property. The market now is certainly a buyers market for those with enough cash to spare. Unfortunately this only concerns perhaps 5% of the population anyway.

Same desaster here in the Real estate market of Spain. Prices are in free fall…

People kept telling us we were crazy to sell our home at a time like this. We were lucky to sell quickly for our asking price. But after jumping that hurdle, you’re right, it is a great time to buy. We got a great price on a home in a nice area with an awesome interest rate.

How does one find the appraised value of a commercial property for sale? How does one find market value? Then how do you decide on an offer based on those prices?