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Reasons to Buy a Home Now

April 05, 2012 | Comments: 0 | Views: 111

The government, in an effort to help stabilize the housing market, is allowing real estate investors to buy foreclosed homes in bulk at very reduced prices. The first bulk sale is scheduled for homes in the hardest hit areas of the country, like Nevada, California, Arizona, Atlanta area, Chicago area and South Florida. These homes are being sold in bulk with the caveat that they be held by the investors and rented out, not sold for a specified period of time.

Lenders are looking for ways to reduce their inventory of homes. Bank of America announced they would test their own pilot program where 1,000 distressed homeowners in New York, Arizona and Nevada will be able to give their homes to the bank in lieu of foreclosure, and stay in their home for up to 3 years while renting it from the bank at or below current rental prices. After the 3 year period, the bank plans to sell these homes to investors as well.

If you are an investor with tons of cash, buying bulk real estate looks very attractive. Rental rates are up because the flood of foreclosures sent homeowners into rental properties in historic numbers. Expecting that trend to not only continue but explode, Wall Street has taken notice and Hedge Funds are looking at bulk real estate as the next great investment for their clients.

These bulk real estate investment programs are touted as a way to force a bottom in the housing market, thereby stabilizing it. But what does this mean to the average Joe? Is owning your own home destined to become a thing of the past?

Let's look at some national housing facts:

  • According to RealtyTrac, a real estate data provider, there are close to 650,000 foreclosed properties owned by lenders.
  • A projected 710,000 are in the process of foreclosure, and
  • According to the Mortgage Bankers Association, approximately 3.25 million more borrowers are delinquent on their mortgages and in danger of losing their homes to foreclosure.

That is a lot of real estate owned or will be owned by lenders. Banks are not in the business of owning real estate. They need to get these homes off their books. Selling these home in bulk looks attractive to them. But is it the best way to stabilize the housing market. The National Association of Realtors (NAR) doesn't think so. They would much rather see home ownership be the norm and the only way to do that is to expand the availability of financing to qualified buyers. We are already starting to see mortgage money becoming more available.

Unfortunately, many qualified home buyers are afraid to buy in this market. Here are several reasons why you should buy a home now:

  • Interest rates are at an all-time low
  • Homes are more affordable than they have been for years
  • Builders are offering big discounts
  • There is a large inventory of homes available
  • It is a buyers market, you are in control
  • Mortgage money is available

Home buyers and small investors know this is a great time to buy. If you have been putting off buying a home, now is the time to act before the market changes. Real Estate in South Florida has actually been increasing in value. It's time to buy. Get more information on the South Florida Real Estate Market at

Keep up with the latest news and information on the Broward County Real Estate Market.

This article may be republished with all links in tact.

Source: EzineArticles
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