Did you hear the news? Warren Buffett says that now is a great time to buy. That’s true. With interest rates and prices also at all time lows, why not make purchasing a property a priority in 2012?
But, is it a good time for investor buyers? Yes and no.
For investor buyers who want to hold onto properties for rental purposes, now is an awesome time to purchase a property. There are a fair amount of properties available, and investors who are paying cash have an additional edge—particularly on properties where condition may be a factor that impacts a buyer’s prospects for obtaining a mortgage loan.
But, on the other hand, those investors interested in ‘flipping’ properties may not have it quite as easy. In San Diego County, we rarely see properties (particularly bank-owned ones) selling for cents on the dollar. Those pesky banks seem to prefer to take their chances with FHA first-time homebuyers (and move up buyers) that are making higher offers as opposed to recognizing the benefits of cash in pocket right here, right now.
What’s an investor to do? For those investors looking for a steal (or a deal), the best option seems to be identifying homes that will not qualify for any sort of loan programs. This will decrease the buyer pool significantly and may allow the buyer to get that deal that he is looking for.
Buying a property cheap ain’t easy. You have to write a lot of offers, in many cases, before you are able to put together a worthwhile deal. But, with prices expected to stay low for some time, it seems that investors will definitely have the opportunity to get the deal they are looking for.