Using Property Investment Opportunities in a Recession
The US property market has suffered during the global recession as house and property prices have continued to fall since 2008. Low employment and rising living costs means people generally have less money for property investment opportunities and are unsure if they will see a return.
During 2011 the fall in residential and commercial property prices began to slow and experts suggest that prices will reach their lowest point later in the year. When the market reaches bottom prices will remain static and then begin to rise and the market begins to recover during late 2012 and continuing in to 2013.
The property price crash has lead to many people having negative equity on their properties, the price of their property is lower than the price they initially paid and their mortgage is now higher than the property value. This brings about forced sales and repossessions, with many properties being sold at below market value or BMV. Finding BMV properties to invest in can be difficult when the housing market is so unstable, as there is uncertainty as to whether prices will fall further. However as the fall in prices is expected to stop later this year those looking to invest in overseas property in the US may get a good investment.
Property industry experts have predicted that the fall in property prices will stop during 2012, then recover and begin to rise towards the end of the year. Any recovery will be affected by other aspects such as a rise in employment or a change in the number of people with negative equity. However the rise is expected to be a steady one. Popular locations with great amenities and a high employment rate will have properties which hold their value better and are highly sellable. If you can buy these properties BMV you will see a better return on your investment.
The rise will of course vary depending on location, houses in areas with easy access to good local amenities and high employment prospects are more desirable to buyers and will