Question:

Will the housing industry turn around?

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I'm about to buy a house. I'm looking at foreclosed bank-owned properties. If I buy a home really cheap, will I get a nice return in, let's say, five years or so?

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absolutely you will. You are buying at the bottom of the market get after it

I am a mortgage banker in TN & KY
Report (0) (0) | earlier
5 years is a good guess as to when home prices will RECOVER.

There is and there will be a LARGE pool of homes for sale (foreclosures, REO, etc) for the foreseeable future (3yrs). Buying a home NOW as a place to live in in for a long time is a GOOD idea. Why?

1) REstate is a GOOD long term investment,

2) Tax benefits

3) Financial discipline required to get a loan today will put you in good shape to KEEP the house for years

Today is a GOOD time to buy a house if you are an investor if:

1) you can buy 65-70% of retail for the house (fixups?)

2) you have the reserves to HOLD and RENT the property

3) you are an equity buyer

Get qualified witha a mortgage pro so you can buy that dream home!
Report (0) (0) | earlier
5 years or so probably will recover. Most experts are saying 2011. Foreclosure purchases are difficult, time consuming and frustrating. Be prepared for that. Also, "really cheap" often means "lots of offers" so be ready to compete.
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YES the housing will turn around

When is the question

5 years? Maybe, probably

Problem is that real estate is so local, so we can't tell you

Will prices just stabilize or will they rise?

If they rise, will they rise more than inflation?
Report (0) (0) | earlier
One rule of thumb to remember is this....you make your money when you buy. If you don't buy it right, you're placing yourself at risk. You can't depend on appreciation....you have to buy it at the right price. You would have to get a professional to help you find out what the sales trends are in the areas you're interested in. If the prior 5 years showed that area had significant buyer interest and values did in fact increase, you "should" be OK. Knowledge of the market and area is key.
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