Investing in Real Estate

Buyers, would-be investors and housing speculators in today’s housing market face
considerable obstacles when considering the purchase of a home. Factors which are
causing many well-qualified buyers pause include fears regarding job security,
concerns about the stability of home values. Additionally, the health of the general economy,
fears of rising mortgage interest rates and the unsure footing of Wall Street
Investments such as stocks and bonds all coalesce to make one unsure if now is the
right time to commit to such an important purchase decision. All these factors are
in underscored by exorbitant property taxes on many desirable properties. Further
confounding reason is the undeniable fact that property taxes almost always outstrip
a home’s actual retail value; thus making high taxes a point of contention turning
many buyers away from otherwise sound investments. High property taxes have
combined with tightening mortgage lending standards and push many would-be buyers
back into the ranks of renters. Faring little better, many landlords are finding it
difficult to compete against strong values offered by distressed properties located
in outlying areas creating islands of sorts in more affluent and centrally located
neighborhoods.

House Flipping

Also frustrating to many is the continued popularity of “House-Flippers” who are
buying up many distressed sales needing only minor or cosmetic repairs or updating
only to market them at a considerable markup. The other part of flipping houses
involves subdividing lots and eliminating valuable features such as garages in favor
of constructing unattractive, more vertical housing immediately adjacent to existing
structures in an effort to increase profits by paying for much of the build through
the sale of the existing house on a much abbreviated parcel of land. Only time will
tell what the net result of these many factors influencing housing will have on a
grand scale but in spite of all this one thing remains certain: in any market there
are good deals as well as those worth passing over.

Real Estate Investment

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