The Foreign Investor – There Hasn’t Been a Better Time to Invest
For the most part there are grand opportunities to invest in the real estate housing market on a national level. We will take a closer look at the Arizona real estate market since it is one of the leaders in short sales, foreclosures and bank owned homes.
No matter whether you are investing in stocks or real estate, the old adage “Buy low, Sell high” is always the ultimate goal. The Arizona housing market has some of the best home prices in the nation. Whether you are considering a second home or an opportunity to make a quick profit, the door is wide-open and should be taken advantage of.
There is always a much higher risk if you are looking to make a quick profit. It will require more research by your real estate agent. Most investors are interested in purchasing property that is approximately 20% under current market value. You will also have to consider immediate cost for repairs, etc prior to placing the home for sale on the market. If this is a second home then the risk factor is diminished considerably. You will definitely be buying “low” and then a determination will have to be made in the future as to consider selling “high”.
There seems to be a lot of activity with the Canadian investor. The majority seems to be purchasing a home as a second or retirement home rather than flipping the home and trying to make a quick profit. Cash is always King. Financing has become much more challenging for the foreign investor but there are lending institutions that offer financing to the foreign investor usually requiring 25% to 30% as a down payment.
The real estate markets in most areas have somewhat stabilized as for pricing. Some areas are seeing small increases in sales prices while other areas are still decreasing. This holds true for Arizona and most other parts of the country. It also seems that interest rates have bottomed out and will soon be on the rise. For those investors waiting for prices to come down even more, if they are financing their investment, chances are the rise in interest rates will “wash” the current lower prices of homes.
Banks have hundreds of homes in inventory that have not been placed on the market for sale. This is mainly due to assure that prices do not come down even further by flooding the market. These homes will be a great investment in the immediate future. It is also predicted that many foreclosures are forthcoming.
The economy in general seems to be improving but at a snail’s pace. The government and Big Banks are enforcing new rules and laws to help stimulate the job and real estate markets.
In the late 80’s interest rates were in double-digits and in mid 2000’s prices increased 30% to 50% in many areas. These over-inflated prices have now come down to reality and it could not be a better time to invest.