I plan to do this. It’s in a nice neighborhood in a bedroom community 40 minutes from Atlanta. It’s a foreclosure.
But aren’t housing prices likely to fall? Yes. The latest data indicate that foreclosures rose by 14% between the second quarter and the third. This indicates that the inventory of unsold homes is rising.
If inventories are rising, why buy now? Why not wait?
First, because the bank pays zero percent. Second, I can rent the house for at least $300 a month, net. That gets me 12% on my money. Maybe I can get $500. Oh, boy!
Yes, there may be another deal coming along even cheaper. Fine. I’ll buy it, too. Who says I must limit myself to one home?
Buy the deals when they arise. All real estate is local. If it’s a good home at a good price, buy it. There will be 400 million Americans in 2050. They will have to live somewhere.
But don’t be foolish. There really will be more where that came from. The housing market will fall in 2012. There are several good reasons. You can read them in the attached report.