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Real Estate Investors Paying Cash For Homes
Sunday, June 26, 2011
Homes sales are at new lows all across America in 2011. There are fewer people purchasing new homes, and even fewer first-time home buyers now. This is because the US economy has been hard hit by the current recession, and more and more people are losing their jobs. The US housing market was one of the first sectors of the economy to be affected by the recession. The real estate market was hard hit, with many homeowners losing their homes.
When the sub prime housing market went burst, homeowners lost their homes due to the fact that they took out mortgages they could not afford. Some did not even have incomes that could support a regular mortgage repayment. Any foreclosed home will lose close to half its value, when it gets back on to the market. Other houses in that area or region will also lose value.
It is facts that since the recession hit, there have been fewer and fewer homes purchases across America that is normal. There are now fewer first time home buyers than in previous years. Prices for homes have also fallen drastically due to reduced incomes, foreclosed homes and a general shortage of home buyers.
In the year 2010 alone, there were one million foreclosed homes across the country. This year, the figure is expected to hit the 1.2 million mark. When banks foreclose a property, they are forced to sell it for less than what had previously been paid for it. This affects the price of other homes, causing them to plummet.
There is a new entrant into the housing market. This is the cash buyer. There are investors who are buying up real estate properties across various US states, and paying cash for theses homes. These are mainly investors who are looking for affordable, cheap and good homes. Buying in cash has its advantages. There are no monthly mortgage or loan repayments, there are tax benefits and the buyer becomes the immediate owner. These homes are also rented out, bringing in returns almost immediately.
As investors in the real estate sector, we buy houses across the US. Our main aim is to invest in good residential properties that can be profitable in the long run. Most of the houses we buy are rather affordable at the moment, because of the depressed prices found in the housing market currently.
People looking to dispose of their homes in return for ready cash can make us an offer. When we buy houses, we pay cash so that the process is fast, convenient and simple. Buying homes and paying for the same in cash helps prevent the prices from falling even further.