Real Estate Investments Seem To Be Lucrative In The Present Economy Despite Low Mortgage Rates

The real estate investment seems to be lucrative as the chances are high to get short term profit along with a long term gain. The real estate market is presently going through doldrums as there has been a steady increase in the house price and on 2006 the prices reached its pinnacle. The valuation of the house climbed and reached unsustainable levels compared to the incomes and other economic factors.

In 2010, we find that the mortgage rates and the refinance mortgage rates have dropped considerably. People, who bought house for a five years adjustable rate mortgage faced the unwelcoming plan of the destiny. Many people lost their jobs because of this great depression and it resulted in the rise of default on payments and foreclosures.

Mr. President’s administration introduced the Home Affordable Modification Program (HAMP), to help the borrowers with mortgage modifications who failed to pay back. But out of every 6 borrowers only 1 has got approval for the HAMP.

What should a real estate investor do?

In the current market, there are numerous real estate investment opportunities for the investors. But the investor needs to approach the market in an innovative way. Through short sale the investors can gain a fruitful profit made in short term real estate investments. There is a long list of these types of houses and the wholesale buyers are keen to invest in these properties on the basis of buy and hold strategy for making rental income. In this situation, the short term investors reap profit by selling the property to the long term investors. These long term investors hold properties for constructing a complete financial portfolio.

The commercial real estate is another method of investment in the real estate market. It provides a great investment opportunity for the real estate investors.

Apparently, you might find that real estate market declining they should be aware that a wide range of options are available for investment in the housing market. But the investors need to explore to get a desirable result.

Article contributed by: Myrina Stein – [email protected]

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