Tip 18-2012: Short Sales -- Who Are The Future Buyers?
Previously, Tucker's Tip 12-2012
predicted that short sales and REO sales will continue to increase for
several years into the future. In fact, several recent national
articles have predicted that with the "Robo Signing" mortgage
settlement, several of the larger lenders may soon increase their
foreclosure activity. As these same lenders are also encouraging short
sales for the significant number of distressed houses, short sales will
also increase.
So who are the future
buyers of these short sales and REO's? There are only so many people
willing to become first time home buyers. The prediction now is that by
2013, 25% of buyers will be investors. More and more investors are
realizing that there are tremendous values in real estate. New lender
regulations now allow an investor to have as many as ten real estate
loans. Investors also have the time to wait to purchase a short sale or
REO property. And finally, there appears to be enough renters
available to rent these investment properties.
With all of this in
place, it would seem that the real estate community, in addition to
promoting first time home buyers, should also be looking at future local
investors. (There are only so many "Warren Buffetts" around to
purchase investment properties. Buffett told CNBC's Squawk Box in Febuary that he'd buy up "a couple hundred thousand" single family homes if it were practical to do so.)
Our local market may not have a "Buffett" in the wings, but I bet there are plenty of other investors looking to buy.
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions. Thank you for allowing us to send you this email.
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William D. Tucker, III
Charlottesville 434-973-7474 | Lake Monticello 434-589-3636
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