By Diki Assidiqi. House. Published at Sunday, February 17th, 2019 - 05:15:36 AM.
The Macro-Dynamics of the US and the Canadian Housing Markets: An Analytical Comparison Introduction: This article examines three key fundamental questions: (1)-Would the US housing market face any reversal given what is happening in the US and global economy? (2)-As predicted by some pundits, would the Canadian economy undergo any serious correction? (3)-What are the key macroeconomic factors which impact the Canadian and the US housing markets? And using this framework what predictions can we make both for short and long term trends of real estate markets? The US Housing Market: Its Evolution from Crisis (2007-2008) to Present: The US housing bubble was created by Steroids Banking using Securitization process and taking advantage of low interest rates and massive inflow of investment money from abroad. The housing prices in most regions almost doubled 2001 to 2006; and subprime lending escalated astronomically. The private Mortgage banks were applying their creativity and greed in designing highly risky esoteric mortgage products using the Securitization process. What is Securitization? Put simply this is packaging of mortgages (including subprime) into structured products (Mortgage backed securities, Collateralized debt obligations). The manufacturing mortgage bank then removes these esoteric products from its balance sheets to minimize any risks and sells these products to institutional investors using SIV (Structured investment vehicles). The buyers of these products erroneously assumed that the underlying mortgages of these securities were safe collateral given upward trending housing market. However, when subprime mortgages defaulted and housing market began to sink, these structured products built around defaulting mortgages fell sharply in value, thereby freezing the entire global credit system. Added to this turmoil was dilution of commercial paper because of potential default of big lending institutions. The global financial system was under siege. Ironically, the Credit default swaps, which mean to insure against default of these mortgages collapsed under their own weight, thereby reinforcing the Credit crisis. The US Treasury and the Fed intervened and injected trillions of dollars to save the collapsing US Housing and Banking system. This crisis is a classic example of Moral Hazard issue. Who was responsible for over-leveraging the system beyond its buoyancy point? Technically the Mortgage banks had packaged the mortgages and passed on the risks to the institutional investors. The institutional investors made the wrong assumption that the US housing market will move North forever. The Fed and other institutions did not have a proper regulatory-monitoring structure as envisioned in the BASEL guidelines to avert such over-leveraging. Nobody knew who will be responsible if the edifice collapses. Worst of all, the institutional investors assumed wrongly that the Credit default swaps (CDS) instruments would work miracles; and bail out defaulting mortgages. This is known as Moral hazard problem. Ultimately everybody was looking forward to the Fed and the Treasury to bail out the global financial system from reaching the doomsday. The US Housing Market in the aftermath of Crisis: The Mortgage Delinquency Rate (MDR) is a key metric that speaks of the real fallout of the US housing crisis (2007-2008). It measures the percentage change in delinquency of residential loans. In June 2007, the MDR was 2.17% and reached its highest level in March 2011 at 11.36%. It recovered back to 2008 levels at 10.4% recently. MDR is a key lagging indicator that reflects economic difficulties. Another key metric reflecting the state of housing health in the US is the S&P/Case Shiller Home Price Index. This is an index reflecting change in housing prices of 20 (and 10) key US metropolitan areas. The home prices in April 2012 for 20-city composite have reached the level existing in the start of 2003. In April 2012, the home prices have declined about 34-35% from its peak level in 2006. The main reason for a stagnant US housing market as evidenced from the MDR data is a fragile labor market. Slow job growth rate is due to weak consumer spending, which is the 70% component of real GDP and key driver of job creation in the US. Consumer spending is directly related to job growth rate, the saving rate and the consumer confidence. In an uncertain environment, spending falls and both the US dollar and saving rate increases. Although savings are recycled by the intermediaries as investments for businesses, this does not necessarily translate onto investment spending and GDP growth. Companies in a high risk environment aim to trim their balance sheets by paying off their debts, a process called as deleveraging. They do not want to burden their balance sheets by borrowing from banks. This deleveraging process slows down the level of investment in the economy thereby indirectly moderating the job growth rate. Deleveraging also runs counterproductive to low interest rates and impedes growth in jobs and therefore fast recovery of real estate prices. Why the Canadian housing market is not poised for a serious correction? The Canadian Mortgage system is more robust and conservative than the one prevailing in the US. First of all, the Canadian subprime market is only 5% of total outstanding mortgages whereas during its peak years 2004-2006, the US subprime market captured 25% of total outstanding US mortgages. The Canadian mortgage system executes better risk management tools including limited exposure to securitization and tight lending practices backed by insurance mortgage. The recent changes in the Mortgage lending have further tightened the belts to avoid any risks to healthy housing in Canada. The supply and demand conditions in Canada are monitored by all players actively. There is a great degree of transparency and authenticity in the housing data and practices. Supply dovetails both current and future demand leaving little room for creation of bubbles. Remember bubbles happen when there is a huge undiscovered lag between supply and demand. For example, there is an anticipated constraint of commercial real estate supply in the wake of surging demand both in Toronto area and Western Canada. A large number of Canadians are currently disillusioned by lower and volatile investment returns in the core financial assets, stocks and bonds. The ongoing volatility in the Capital markets is expected to last in the next few years, given some long lasting problems like risks of Sovereign debt crisis in Europe & the US. This situation has mobilized a great number of people to invest in real estate as most viable alternative investment in the wake of record low interest rates. This process might continue for some years as the core financial assets (stocks, bonds and mutual funds) may not pick up momentum soon. The concept of a bubble is not quite relevant in the context of the Canadian housing market. This is explained in terms of a typical sales cycle witnessed in Toronto and other places in Canada. The sales cycle woven around tighter demand-supply conditions mitigates the probability of bubbles. For example, in Toronto, condos are sold or flipped by investors, who generally do not live in those condos. When interest rates would inch up in future, these investors will find it difficult to keep highly expensive condos. They will sell these condos putting downward pressure on prices of the condominium market. Intuitively, the falling prices will give opportunity to new immigrants and other investors to purchase condos, as they could not previously afford it. This process is further strengthened by different ethnic groups who support their new immigrant friends and families toward the purchase of their first homes in Canada. Overall these processes would push prices upwards again. To conclude, given these tight supply-demand conditions, the chances of any serious correction are quite minimal in Toronto. What are the Macroeconomic factors which impact the prices of Real Estate? Interest Rates and Inflation: Interest rate is the price of money. It is determined by supply and demand of loanable funds. However the countrys Central bank can greatly influence the rate by tightening credit conditions or making those relaxed by pumping money into the system. This is typically done through Monetary Policy and open Market operations. Lower rates make it cheaper for potential buyers to borrow money and make purchases. It also helps current homeowners to refinance their homes and save money. All this will lead to stronger demand for mortgages and housing. Increasing rates will have the opposite effect and dampen the level of sales activity in the Mortgage market. Carry forward trades, borrowing at lower rates in one region and investing it in other, also indirectly impact real estate. For example, foreign institutional investors can borrow money overseas at cheaper rates and invest in Canadian real estate market. More important, real interest rates equal nominal rates minus inflation. Rising level of inflation will lower the real interest rates and declining levels will inflate real rates. Inflation typically feeds into asset prices including real estate. Tightening of money supply is done to control inflation, and this process leads to rising interest rates. Easing of money supply is done to trigger growth and this is accompanied with declining interest rates. However greater supply of money and rising oil prices (supply side) feed into inflation and ultimately inflates asset prices. Economic Growth, Consumer spending and Employment level: Economic growth is measured by growth in the real GDP. Slowdown in economic growth-both global and regional-raises fears of deflation or declining prices, which does not bode well with overall economic affluence. Deflation can be compared to freezing of an economy. Japan experienced sustained recession due to deflation for a long period. Fear of deflation due to declining growth can have negative impact on the real estate market. Labor Market dynamics and in particular the level of unemployment has a critical relationship to the health of the housing sector. Rising unemployment during recession is often accompanied with low housing demand and mortgage delinquencies. For example, when Enron crisis erupted, there was general softening in the regional housing market. Another example is the current state of the US housing market. Economists say that the slow pace of housing recovery is attributed to a stagnant US labor market, which is stuck up at over 8% of unemployment rate. Consumer spending plays a key role in the US while the export sector plays an important role in China. As well in Canada, consumer spending has correlation to the GDP growth. In case of the US, Consumer spending constitutes 70% of GDP and is therefore most important driver of GDP growth rate. Higher consumption level, driven by consumer confidence levels, leads to greater economic (job creation) activity and ultimately translates into greater demand for housing. Surging consumer debt, as it is happening in Canada, is also not healthy for a sustainable consumption and GDP growth. Over-leveraged consumers do not have the capacity to absorb shocks like layoffs or increase in interest rates & inflation. Institutional Capacity of Economy to absorb External shocks: The housing crisis of 2007-2008 contaminated the global financial system. The Fed and G-7 countries had to undertake unprecedented bail out measures to save the global financial system from getting derailed. Fortunately, the Canadian housing market was resilient enough to absorb the shocks and did not sink. This happened because of a relatively conservative mortgage system prevailing in Canada. Regulatory measures also impact the resilience of the housing market. For example, tax credits in the US had triggered growth of the housing sector in the aftermath of crisis. Canada has applied its regulations to keep the housing sector strong and healthy. Demographics and Migration: These play an important role in shaping the long term prospects of the real estate market. In Canada and the US, the aging population of baby boomers will create more demand for residential and vacation homes in the next decade. International migration to Canada is also an important determinant of housing market in Canada. Technology, Oil-Commodities boom and Exports: The Canadian economic and housing activity is also impacted by three external forces: Chinese Investors, Oil-commodities prices and economic activity in the US. The Western Canada is impacted by the level of Chinese and foreign investments, mainly in the Mining and Oil sector. The Eastern region, mainly Ontario and Quebec, is impacted by the level of exports to the US and therefore indirectly on the state of the US economy. Stronger Canadian dollar does not augur well for exporters. Overall, the Canadian economy and dollar are strengthened by rising demand for Oil and commodities. National Level of debt: In the US, the national level of debt is reaching about $14 trillion and will continue to grow in the years to come. National debt piles up due to persistent fiscal deficits in the economy. In the US, there is a challenge of twin deficits-both fiscal deficit and external imbalances. The twin deficits not only lead to faster growth of national debt but trigger anticipation of higher interest rates and inflation. This happens through the following mechanism: Higher debt in the US is monetized by either selling bonds to China (or other surplus countries) or by printing money from thin air. In either case it leads to greater risks and consequently higher interest rates, fast depreciating currencies and therefore more inflation. Some economists say that if debt is not contained by the US policy-makers, we may enter an era of hyperinflation where all asset prices (including real estate) will become very costly. Applying Macroeconomic Framework to analyze current & future trends: (I)-Current Global Economic Outlook: The global economic growth is expected to moderate in 2012 (and perhaps 2013). Concomitantly, the global real estate market is cooling down a bit. The moderation in growth is spread unequally across different geographical regions. In the US, which been the central point of housing crisis, there is some improvement in key housing indicators. Given sustained low rates, minimal probability of deflation (freezing of economy) and complete preparations by European Central Bank to cope with Eurozone debt crisis-there is less likelihood of any major reversal to the US economic fundamentals and therefore the housing market. The key emerging Global housing trends are captured in the following summary: (A)-The battered US housing market is relatively stable, with less increase in foreclosures and mortgage delinquencies. The US market is currently an ideal buyers market. However, there will be a substantial lag time before we can witness a complete turnaround in the US housing market. (B)-The vibrant Canadian housing market is generally perceived to be ready for some correction in 2012 and 2013. Chart V shows key housing trends in Canada. (C)-The European housing market is (and will in future) undergoing a degree of correction. This stems from recent fiscal crisis in Europe as well as fragility of the German economy exposed recently. The housing market in the emerging global economies is also cooling down a bit. (II)-Some Predictions using the Macroeconomic Framework: The short term perspective of the Canadian housing market might witness come corrections in 2012 and 2013, but as argued in this paper this will be minimal. Also, as argued further, the commercial real estate market will stay steady and strong in 2012 and 2013 in Canada. Given the complex interplay of global economic forces and what is happening in the Eurozone and the US in terms of debt crisis, it is rather difficult to make any certain long term predictions. However, growing complexity warrants a more holistic inter-market analysis to predict about the real estate trends. The seven key global economic trends of the next decade can help us understand the future real estate prospects as well. These seven trends are as follows: (1)-The bubble of Sovereign debt crisis in the US and Europe will last for sometimes, at least next decade. Governments in this part of the world are running unsustainable massive debts, which will ultimately put an upward pressure on inflation and interest rates. (2)-The clear outcome of (1) above will be depreciating value of currencies. (3)-Another consequence of (1) above will be fragile and volatile bonds and stock markets. (4)-Commodities, gold and some alternative investments will become attractive as they will be perceived to store real value. Currencies, stocks and bonds will depreciate fast. (5)-Inflation will be triggered by massive monetization of debt (printing currency from thin air). This situation may be exacerbated if China pulls out trillion of dollars of US bond purchases it made in the last decade; and if oil prices continue to move north. (6)-Demographic trends entail growth of baby boomers in North America and Europe leading to migration to North America. (7)-The US dollar will not evaporate because of spectacular performance of the US companies and technological advancement in North America. Given these seven key economic trends of the next decade, the housing market will stay vibrant and steady in Canada and the US. Baby boomers, foreign investors and immigrants will continue to play a critical role in strengthening the housing demand in North America. Hyperinflation, as worst case scenario, might pull down demand of assets because it would stoke prices of those assets including real estate. At this stage, however, it cannot be predicted whether the European and the US governments will take concrete measures to contain their debts and put in place sustainable debt management policies. Future events will unravel the political commitment of these governments. At this stage, one thing is certain: the current debt monetization policy of these governments is not sustainable in the long run.
Mistakes To Avoid When Attempting To Sell Your House Fast :In this housing market, it can be difficult to sell a house fast. These are the five mistakes you need to avoid if you want to have your house sold quickly: 1. Asking Too Much Setting your price too high is the biggest mistakes home sellers are making in this market. Your Realtor may give you a price that they feel the house should sell for that is higher than what it is likely to sell for. Some Realtors inflate their estimate so that the prospect of selling your house is more attractive. There is more incentive to sell your house. Make sure you have a good idea of what other similar houses are selling for in your area. You should be comparing houses with the same number of bedrooms and bathrooms, size that is within about 300 square feet of the size of your house, and similar amenities. Other factors that should be taken into consideration is the amount of time the houses sat on the market before they sold. This brings up another point in that you really should focus mostly on houses that have already sold. Anyone can ask anything they want for a house. What someone is willing to pay for it is an entirely different story. If you want to sell a house fast, you should price your house slightly lower than the others that are on the market. Evaluate your competition. See what their houses have that yours doesnt. 2. Not Being Aware of Your Competition This one is an extension of the last mistake. If you do not know what you are competing with, how are you going to know if you are priced right? Your house needs to priced lower than a house that has more upgrades. These upgrades include things like granite countertops, hardwood floors, new energy-efficient windows, new mechanicals, and just about anything else that buyers will find more appealing. You can compete by offering your house at a more attractive price. Visit open houses to get a sneak peak at your competition. Take note of anything theyve done to make the house more appealing that you might be able to incorporate. If there are not a lot of open houses taking place, you can have a Realtor show you the houses. 3. Being Stubborn Do not be the seller that is unwilling to negotiate or give concessions. Buyers want to feel like they are getting a great deal, especially these days. It is a buyers market and if you dont accept that, you shouldnt be selling your house. Even if you feel like you are giving them a good deal, you have to be willing to give a little. It doesnt have to be price that is sacrificied, you could offer to throw in some appliances or furniture that they might like. Get creative. If you are not getting showings and youve done your homework and know the house compares favorably with your competition, your best bet is to reduce the price. Do not be stubborn and refuse to budge. Your house will just sit and the costs you accrue while your house is the on the market will likely exceed what you would be giving up with a price drop. 4. Not Having The House In Sellable Condition Buyers are extremely picky these days because they can be. With a high number of houses for sale and lenders tightening their lending criteria, this is inevitable. You will need to make sure that your house is in move-in condition. Replace rotted wood, repaint inside and outside, update anything that is dated (including 90s style wallpaper and fixtures). You will need to make your house stand out and make the people viewing it feel like they can see themselves living there. Some things can be done relatively cheaply that will provide big improvements. Paint is the cheapest thing you can do that will bring the biggest returns. You can update cabinets simply by replacing the handles and knobs. Clean the windows. This always helps with the impression the house makes. If you cant afford or dont have the time or energy to complete necessary repairs, you will need to adjust your price accordingly. Most of the time the price needs to be reduced more than the repairs would cost due to the fact that buyers will want a good deal because of the hassle and unknowns that come with remodeling a house. Working with contractors can stress anyone out. 5. Refusing To Consider Selling To The We Buy Houses People If your house needs repairs that will scare off buyers, you really need to consider getting an offer from real estate investment companies that advertise We Buy Houses . These companies typically pay cash and buy houses as-is. This allows you to sell without providing any warranty or doing any of the repairs. Even if the house does not need repairs, they will make an offer to buy it so that you can sell the house fast. If youve inherited a house or just evicted some tenants and want to avoid renting the house again, real estate investors may be your best best. You can have an instant buyer rather than putting it on the market and having to have showings to try move it. These house buyers will make an offer and you can either accept it or not. Why not try them out and see if you could save a lot of time and hassle? The tradeoff with using a house buying company is that they typically need to buy the house below market value as they are buying for investment purposes. Its better to know this upfront. Most We Buy Houses websites do not mention this. For a lot of sellers this tradeoff is well worth it to avoid the hassles of selling a house in this market. Hopefully you can avoid making these mistakes while trying to sell your house fast. Understanding what to avoid will put you far ahead of the competition. Good luck with the sale of your house.
The Haunted Sallie House : There are a lot of haunted houses all around the world, and such structures really do spark the human imagination. For some people haunted houses are scientific anomalies which require scientific investigation, while others regard them as centers of paranormal activity that must be revered or even feared. Whatever the truth may be about haunted houses, its undeniable that many of them have terrifying reputations. Among the most notorious haunted houses in the world is the Sallie House. A lot of people in Atchison, Kansas believe that the Sallie house contains evil spirits, while others believe that the entities within are simply lost souls seeking help. Despite peoples opinions about the matter, the Sallie House has become one of the most important attractions of Atchison, Kansas and has been the subject of many TV documentaries. This simple 19th century house originally got its name due to the haunting of a little girl, who was later given the name Sallie. The couple who owned the house believed that the little girl was trying to warn them about the evil spirits which dwelt within the house. Due to the numerous sightings of the little girl, the haunted house became known to both local residents and investigators as the Sallie House. Over the years however, the house began to exhibit other hauntings besides that of the little girl. These hauntings lead observers to conclude that other entities may be inhabiting the house or perhaps some other force was at work within the area. People have always wondered about the entities which inhabit this house. Are they simple ghostly visitors, or are were they lost souls trapped within the house? Were they looking for help or were they just malevolent entities that seek to do harm on the houses human occupants. This is not an easy question to answer, but for those who seek clues to the nature of the Sallie House, its important to look at its long and interesting history. The History of the Sallie House The House that will later be known as the Sallie House was first built in 1867. The land on which it was built on was purchased by one Michael C. Finney, who moved in with his family to start a new life. Finney had a wife, two sons and daughter, and the house remained in the possession of the family until the death of Agnes and Charles Finney, both of whom were Finneys descendants, in 1939 and 1947 respectively. When the Agnes and Charles died, the house was rented out to various boarders. However, people never stayed long in the house and for whatever reason, there were few records on the people who stayed there. The only person who seemed to tolerate the houses peculiar characteristics was one Ethel Anderson, who lived in the house until the early 90s. After Ethel Anderson, Tony and Debra Pickman moved into the Finney home, and thats when the Sallie Houses notorious reputation began to become quite popular. Aside from Sallie appearing to Tony and Debra, numerous attacks were also carried out on anyone who lived inside the house or investigate its mysteries. Tony Pickman, for example, sustained several injuries back when he and his family owned the house in the early 90s, while investigators who visited the house reported sustaining minor injuries, such cuts and burns, during their stay. Whats most disturbing however, is the fact that investigators of house have endured cuts and burns while gathering paranormal data from the house. Although such attacks are usually directed at certain groups of people, it has lead a lot of people to believe in the hostile nature of house and the possibility of demonic presence within its walls. In addition to the attacks, visitors and witnesses also reported full bodied apparitions, flying objects, phantom furniture, sounds of strange animals, human voices and mysterious items appearing and disappearing at random points throughout the house. In addition to witness accounts, a surprisingly large amount of Electronic Voice Phenomenon was also recorded of strange voices from men, women and children, not to mention strange smells emanating from various areas around the house. These data is yet to be authenticated, but over the years a surprising amount of legends and theories has sprung up about the nature and secrets of the Sallie House. Investigations on the Sallie House The first major investigation on the Sallie House was carried out in the early 90s by the Television show, Sightings. Since that time, several psychics and paranormal investigators have attempted to uncover the secrets of the house. With them came technicians and other researchers who were also interested in learning about anomalies which occurred within the house. In addition to paranormal investigators, mainstream journalists, such as the Travel Channel, the History Channel and the Discovery Channel have also investigated the house to gather materials for their own shows and articles. Even Paramount Pictures visited the house in order to gather information for a movie adaptation. Those who have investigated the Sallie House have used a variety of equipment to determine the nature of the hauntings. Among the tools that were used were digital voice recorders, laser microphones, infrared video cameras, electromagnetic measuring devices, and even radiation meters. Those who were less inclined to use technical devices used Ouija boards, crystals, and pendulums to contact the unknown. These psychic devices were used by paranormal investigators and due to their findings and experiences, some of the psychics believe that demonic entities may be inhabiting the house. Other investigators incorporated ESP and other psychic phenomenon in their investigations. Given the frequent appearance of paranormal and supernatural activity in the house, various groups and investigators have begun using the area around the house as a kind of testing ground for paranormal experiments.
Buying A House - Design and Style Tips : We are going to start this entry with a basic overview of the designs and styles of houses. The different types are as follows: Ranch - One level Split Level Split Foyer 1.5 Story 2 Story Patio Home Condominiums Town House To understand the difference between the types of houses we should look at things someone would normally consider when they buy a house. If someone does not want to walk up and down stairs it would be a natural assumption a ranch or patio style house would best suit their needs. Someone that does not want to cut grass would be more interested in a condominium or town house. The people with children or an expanding family would probably lean toward a split level, split foyer, 1.5 story, or 2 story. Especially if they need their own space. Does the House Conform When we ask if the house conform we are asking a basic question. Does your house look like the Jones down the street? We all want to be different in some ways but being different in Real Estate is not always a good idea. This can drastically affect the value of the house youre buying. If the house is a lot bigger or smaller than the other houses in the neighborhood, it does not conform. When buying a house you never want to buy the biggest house because the value will never be maximized to its full potential. If you are going to buy a house that does not conform, buy the smaller house. Think of it with this example, if Donald Trump lived in your neighborhood would his house help or hurt your value? The answer is Donald Trumps house would help the value of your house because he is always going to have the very best house. Your house on the other hand would hurt Donald Trumps value because your house would bring his value down. This is why you see similar designs and styles in a neighborhood. The reason for buying a house smaller than any others in the neighborhood is because the only way the value can go is up. The most inexpensive addition anyone can make to a house is adding square footage. No one ever tears down part of their house to make it conform to their neighbors. Things You Notice But Do Not Realize Have you ever noticed there are always more condominiums, town houses, and patio homes for sale in a neighborhood than there are in a traditional neighborhood? There are many reasons for this activity but we will cover the most important. When buying a house you should examine competition. Competition is what is for sale in the neighborhood, how many and for how much, compared to the house youre interested in buying. For these types of homes, they are usually a first or last time home buyer. This means the young married couple or the elderly that down-sized. In these neighborhoods, there is always what I refer to as a fire sale. Someone is expecting a baby and needs more room so they need to sell fast. When a fire sale takes place there is always a drop in the asking price to try to sell it before any of their neighbors. This is a good strategy for them since all of the homes are identical. This is not good for you though. This is also called the principle of substitution. Why pay more for the exact same thing when you can get it on sale down the street? The value in these neighborhoods struggle to appreciate and go up in value because there is so much competition compared to a traditional neighborhood. How and Why to Bargain Shop When Buying a House It is unfortunate to have as many deals on the market as there are today. It does not make you less of a person to look for a foreclosure or short sale when youre buying a house. A house is your greatest savings account. If you look at these types of houses they will most likely need repairs. This is perfect for you as a buyer. The market is slow and Lowes is not selling as much. If Lowes isnt selling as much then contractors are not working as much. This benefits anyone buying a house if they will use the discounts available to them in the market. The house down the street is selling for $150,000, but the foreclosure is selling for $65,000. The foreclosure looks horrible and not very appealing in its current state. Take the blinders off and imagine it like the house down the street once the repairs are completed. Lets say the repairs cost $30,000, with the foreclosure. You saved $55,000, instantly by buying the foreclosure. If you buy the house down the street you are going to paint it at the least to match your taste. Now youre in debt because you paid full price and spent money after the fact. There are mortgage loans to buy and repair from the very beginning so take advantage of them. The most recognized is the FHA 203(k) loan. There is also Homepath sponsored by Fannie Mae. You can look at their website for available houses in your area. You can also visit the HUD Home Store. When youre buying a house make sure you dont buy with short sighted thoughts. Buying a house is an investment you are making today but is one of the most important investments you are making for your future. If you buy a house right today, it will provide the equity for security in the worst Real Estate market. Its a long term saving account to draw from if its ever needed.
Any content, trademark’s, or other material that might be found on the Conantheadventurer website that is not Conantheadventurer’s property remains the copyright of its respective owner/s. In no way does Conantheadventurer claim ownership or responsibility for such items, and you should seek legal consent for any use of such materials from its owner.