Wednesday, February 13, 2008

Los Angeles Investors - Excellent Time to Buy a Home

Are you a Real Estate Investor here in the San Fernando Valley? If so, then this is the best time to buy a home. Let's face it, it's not getting any easier for people to buy a home. In fact, the going down payment for a stated income / stated asset home-buyer was 5%. Now, it's 10%. What that means is if you were able to buy a home a few weeks ago, it's possible you can't buy one now.

That might be tough news for the average home-buyer, but excellent news for a real estate investor. I'm predicting most of those short sales which are lingering in the marketplace to become bank owned homes. I'm also predicting the number of bank owned homes to double or triple in the next 60-90 days.

A common response I receive from wannabe buyers is, "I'm going to buy when the market hits bottom." That's funny. I'm in this business full time and I don't know when the bottom will hit. I do think home prices will decline further, but how much and when the market will bottom-out is anybody's guess. Maybe a few months or possibly up to two years from today.

What I do know, it's an excellent time to purchase a home. Why? Because nobody is buying. Home seller's selling their homes short will accept any offer the bank accepts. Lenders are discounting their inventory up to 50% off market value to move them now. If you want to be like every wannabe home-buyer out there, then wait and see what happens. If you're serious about buying homes when sellers and the bank are desperate to sell, then buy now.

Before you go, it's funny all the excuses people come up with to not buy a home. I guess people love living in apartment buildings. Just the though of hearing my neighbors conversation and their toilet being flushed is enough to make me work harder to pay my home mortgage. Rents are going up, and it's common for the landlords to have you sign another year lease at a discount to tie you up for another year.

If you want to make a difference in your life and buy when others are running for cover, then this is the time. In fact, why not further negotiate the price of the home 20-30% off to build in a safety cushion in-case prices fall further.

Richard Johnston, RE/MAX OTB

Call me for a free list of bank owned homes or visit:

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