This Is Causing Supply In The Rental Market To Tighten Up

Over the last few years financial institutions were giving out many mortgages without much concern to the purchaser's credit history.

There have been many home borrowers that purchased homes with sub- prime loans and now find themselves in a bit of a pinch or in many cases foreclosure as rates adjust. The recent sub- prime mortgage issues coming to light in the lending industry may give you an excellent opportunity for investing in real estate. This has caused a substantial tightening of lending guidelines and an increased number of foreclosure properties on the market. With less qualified home buyers on the market, home sellers have increased pressure to lower prices to sell. Here is where the effect of law of supply and demand can allow you to get a great investment. Plus with additional inventory of homes on the market due to foreclosures there is even additional downward pressure on home prices.

Another consideration is with less people purchasing homes, more people are renting them. What this means is that right now prices are down, creating an excellent time to buy. This is causing supply in the rental market to tighten up. Use the rental payments to cover your mortgage payment over that time. All these inter- related factors are making it an ideal time to purchase rental properties with an eye towards holding them a few years. Then as the real estate market rebounds and the values come back up sell for a profit.

Banks have been pricing aggressively of late to ensure the property sells and this creates many opportunities for investors looking for rental properties with a high potential of appreciation. Right now the best values can generally be found in the foreclosure market. If this idea sounds appealing to you, visit my website to get in touch with me so you do not miss this opportunity. The time is right now!