Posts in Investment Property
Foreclosure actions increased by 2.0 percent in May from April's 75 month low point for foreclosure activity according to RealtyTrac's U.S. Foreclosure Market Report released June 11. However, the good news is that May 2013 foreclosure filings were still 28 percent below May 2012 filings.
RealtyTrac reports that approximately one in 885 homes were in some stage of foreclosure in May. This does not mean that 1 in 885 homes was lost to foreclosure, but it does indicate that documents related to some phase of foreclosure (Notice of Default, Notice of Trustee Sale, and Bank Reposession) were filed.
Actual lender repossessions (REO) increased by 11 percent in May, but were down by 29 percent as compared to May 2012. 33 states reported increases in REOs with North Carolina, Oregon and Wisconsin having the highest numbers of REO properties added.
Judicial Foreclosure States Lagging In Clearing Foreclosure Inventory
Foreclosure starts were up by 4 percent in May, but were 33 percent lower than for May of 2012. States using judicial foreclosure proceedings were 5 of the top 6 states for foreclosure filings. The state of Nevada, which uses non-judicial foreclosure proceedings, was second after Florida and ahead of Ohio, South Carolina and Illinois.
In general, judicial foreclosure proceedings take longer to complete than non-judicial foreclosures. This results in homes being unavailable for sale for longer periods of time. Lenders are required to complete the foreclosure process and in some cases, they must await expiration of a redemption period before a foreclosed home can be repaired and sold.
In states using non-judicial foreclosure proceedings, the time between the initial foreclosure filing and the foreclosure sale can be as little as three to four months. Quickly turning over foreclosed homes is helpful for improving regional housing markets and making more homes available for purchase.
When you make an investment in Virginia Beach real estate, it's important to consider your options for turning a profit even before you write an offer.
It might be best to rent out the property to cover your mortgage and build equity providing the home cash-flows with solid rents and demand.
Or, you could fix up the home and flip it so that you can sell it quickly for a larger amount than you invested.
Both strategies may be appealing options, so here are some important factors to consider before making your decision.
Flipping May Lead To Short Term Profits
Flipping a house can be tricky, so you will want to have enough experience to know what you are doing, or work with an experienced advisor who can guide you around the most common pitfalls.
If you are thinking about fixing and flipping a house, you will need to have enough capital to invest in the property so you can make the required improvements and repairs.
Many people find themselves short of working capital after closing on the new purchase.
It is important to factor in carrying costs, or monthly mortgage payments while fixing the home, into your overall budget.
Do your research so you'll know what renovations will have the most impact on the value of your real estate.
You will also need to know if the market in the area will support your new price point.
Make sure your flip property is in a very buyer-friendly community for your best chances of a positive return.
Renting Is The Buy And Hold Strategy For Investment Real Estate
Flipping a house gives you quick cash, but renting it out instead may give you monthly cash flow and a potentially larger long-term profit if the property appreciates over time.
If you don't mind being a landlord and you have the time to screen for reliable renters, then renting out the property might be a better option for you.
This is because owning a home can be like having a forced savings account, which you are committed to for the long term.
Consistent Saving On Autopilot
Sometimes saving money on our own each month is difficult. It takes a lot of discipline to maintain a consistent savings plan.
However, paying your mortgage every month means that you are paying down the principal and working toward eventually owning the property outright.
In the early years of the mortgage, the payments will go primarily to the interest on the loan.
But over time, the portion of your payment dedicated to principle increases, which accelerates paying off the entire mortgage.
Make Yourself Wealthy Instead Of Your Landlord
In the long term, owning your own home may be a much better financial arrangement than renting a home. No matter how long you pay monthly rent, you will never own the real estate that you are living in.
When you are renting your home, it may also be possible for your landlord to increase your rent every year.
On the other hand, paying a mortgage on your real estate means that every month you get closer to owning the home.
In fact, most home mortgage lenders offer a fixed interest rate mortgage. This gives you a sense of control over how much you are paying every month, year to year.
In a fixed rate mortgage, every mortgage payment pays down a portion of the principle on your mortgage loan. In many cases this builds equity in your property and increases your net worth.
It's a good idea to check with a professional mortgage lender to get an idea of the most up-to-date programs available.
With Mortgage interest rates being at a 40 year low, high housing inventory, sellers paying most or all of buyers closing cost and housing prices dropping now is the best time to invest in Virginia Beach Real Estate. If you already own a home then think about purchasing a second home or Rental property. Virginia Beach Rental prices have been going up and the inventory is staying steady leading to a higher demand for Virginia Beach rentals.
When you buy a Virginia Beach Real Estate, you also provide yourself with the luxury of enjoying miles and miles of prime beaches, vast stretches of well designed Golf courses, and well over 200 city parks.
For someone seeking to relocate to Virginia Beach, VA this city offers everything for individuals and families alike. If you have been considering the purchase of Real Estate in Virginia Beach, Virginia you have already selected one of the best destinations / places to live in and all you need to do now is browse the Virginia Beach Real Estate Listings to find that perfect property which you would call home.
The infrastructure and lifestyle that Virginia beach promises, attracts professionals from every field to relocate here. Along with one of the cleanest atmosphere, Virginia Beach also offers excellent educational facilities, and some of the best schools in the United States. Additionally, Virginia Beach has the maximum per student expenditure in the region, which shows that the city administration in Virginia Beach spends more on their schools and education programs than many other cities combined.
The shoreline along the Atlantic Ocean is one of the most beautiful creations of nature. Families from all over the world, travel to destinations spread along the shoreline, and spend some of their most wonderful and memorable holidays ever. So don't hesitate call me today and let's look at investing in your future.