In the current time, there are some incredible property bargains to be had, in my opinion. And the best deals of all are located in the same areas that saw the biggest boom and bust just a few years ago.
The USA has some of the best domestic property bargains on the planet thanks to the “hand your keys back” foreclosure system which sets the States apart from much of the rest of the western world in which countries’ rules make it a little harder to walk away from a property purchase you’ve made.
Whatever your political position on this – the way things are in the USA throws up some quite startling bargains just at a time when interest rates are at their lowest ever level.
So “go for it” as long as the property rental yields make good financial sense on an ongoing, long-term basis.
The problem with this approach is the ability to borrow money. The way of the world is to rebound too far in the other direction following the kind of collective madness the world witnessed a few short years ago. And that’s what’s happening today; the banks have rebounded so far in the other direction that even the careful lowly-geared property investors are finding it hard to borrow.
So to maximise your mortgage potential, de-gear as much as you possibly can, keep meticulous financial records and use a mortgage broker. The broker will have more of a vested interest in convincing lenders of your suitability to borrow – so it’s a little easier to convince him or her in the first place.
Also – it may be an option to go private; borrowing money from people you know if the deals make sense and you both trust each other implicitly. And finally, you may be able to put things on a business footing by forming a property company to run this as business instead of a personal investment. Seek accountancy advice if going down this latter route.
This article was written by financial expert David – a keen blogger in his spare time. He knows all about finances, including the Payday Loan culture sweeping the country by storm at the moment.