If you have been thinking about investing in single family homes in 2009 and haven’t yet pulled the trigger my advice is “Hang in there.”   This summer we have seen an unlikely phenomenon in affordable single family housing.   First Time Home buyers enticed by an $8000 tax credit have been in a bidding war with each other and investors for affordable single family homes.  Often this summer we have seen bank owned houses listed under $150,000.00 immediately receive multiple offers and sell in just a few days.  Smart investors are usually the first to drop out of this bidding war.  Come Dec.  1, 2009 the First Time Homebuyer tax credit is scheduled to expire.   So far we have heard no rumors that the program will be extended.  This should be good news for those patient investors.

Overall I expect the climate for investors in single family homes to improve greatly.  Here is my reasoning:

1.) The first time home buyer tax credit will either expire or get an extension.  Either way, the pressure on new home buyers to ‘git r done ‘now will decrease.

2.) There have been indications that our historically low interest rates will remain low for some time.

3.) The inventory of bank owned homes shows no signs of abating.  Defaults are still high.  Government programs to keep defaulting homeowners in their homes have missed the mark by a wide margin. There are some who predict we will see even more foreclosures in 2010.

4.) Winter is coming.  Here in the Minnesota buyers tend to hibernate till spring.

5.) The rental market for single family homes remains strong.  This allows patient investors the opportunity to buy and hold for consistent profits.

There are opportunities now, and I expect there will be an even better opportunities in 2010. So if you’ve been sitting on the sidelines so far don’t fret that you have missed the bus.   Hang in there! Get ready for great opportunities this winter.  Check out our seminars. Get your finances together.  And be ready to take advantage of this historic opportunity to invest in real estate.

Technorati Tags: first time home buyers, real estate finance, real estate investing