Pressure is particularly high for sellers of San Jose foreclosure homes. That is because most homebuyers and investors in this city are concentrated to buying such homes. The housing crisis in the whole of California is continuously posing threats, but San Jose is somehow shielded because of the rising demand and transactions for its foreclosed homes for sale.
A single family house in the city could cost around $863,000. This pricing scheme, although already lowered in reaction to the market re-alignment, has been making for the scarcity of new-home buyers. However, because people need to snap and acquire houses, they are turning their focus to the numerous San Jose foreclosure homes available.
The piling inventory for foreclosed homes in the city is rising, giving an assurance that high demand could be met. The rate of foreclosure is getting high. There is a single home for every 557 houses that are foreclosed in San Jose. As the economic crisis continues, more and more homes undergo foreclosure. This will keep price tags for foreclosed homes for sale very attractive for quite some time.
Aside from the luring and practical prices of San Jose foreclosure homes, it cannot be denied that homebuyers and investors will always consider buying such assets in the city. That is because San Jose is considered one of the most desirable cities in the US. The environment and sceneries are not the only luring factors. There are many business and employment opportunities in the area. San Jose in north California is located in the Silicon Valley area, where several giant technology firms are headquartered like Adobe Systems, eBay and Apple Inc. The city is also declared a very safe one.
Cheap foreclosed homes are the best option if you are looking for a long term investment. There are many reasons they are not a short term investment today but renting is an amazing opportunity that you should consider.
There are so many foreclosures on the market today. It is saturated. This only means that it is currently a landlord’s market today. There are so many people that have lost their home to foreclosure that need a place to live. Obviously, they cannot go buy another house because of their financial situation. This means they are out looking for a rental. There are fewer rentals on the market than there are people who have a place to live. You can rent out low cost houses all day long and make a big profit.
Rentals are definitely long term investments. When you purchase a low priced home that has defaulted you can get it for half the price. You can charge a rent that is twice as much as the monthly mortgage payment and immediately begin making your money back that you paid to purchase the property. Plus, you will be able to put plenty of money aside when your house doesn’t have a renter in it. This will allow you to have a cushion too.
Because rentals are long term investments you have to be prepared for it to take time to get the money you have invested into the house back. Cheap foreclosed homes can be purchased at half the market value sometimes but you have to have patience. You may find that in ten years the market picks up and if you sell then you could make as much as a 400% profit on the investment also. You cannot purchase foreclosures and think that you will put them back on the market for sale immediately and make any money. The only way to make a profit is to sit back and let a renter make the monthly payments on the mortgage while you wait for the market to pick back up. You will have major equity in the house and eventually you will make a very large profit. Right now is definitely the time to buy.