Some of the real estate markets that had crashed after the housing bubble burst are starting to get fired up again. Laurent Belsie of csmonitor.com says that the real estate market is already bouncing back in several areas in the United States.
Based on the data released by the National Association of Realtors (NAR), in 2012, the standard home values in Las Vegas were up by 20 percent. Cape Coral
also saw a 26 percent appreciation despite the fact that Cape Coral foreclosure rate is one of the highest in the country. However, people continue to invest in Cape Coral because of its great climate and geographical location and Cape Coral is known for its reasonably priced waterfront housing and vast canals that adventure seekers and retirees are looking for.
Sean Fergus, manager of research in Irvine said that "It's a very strong time to buy." Fergus added, "The market has really turned." Fergus' firm is predicting that home values in Las Vegas, Phoenix, Atlanta, Chicago, San Diego, San Francisco, and Tampa will climb from 22 to 48 percent.
However, rental real estate can be very tricky. Those who are buying foreclosure properties for business should study the market carefully. Oliver Chang, a former Wall Street analyst says that it is important that investors know what and where they are putting their money on. According to Belsie, many institutional investors are using price appreciation as their indicator to make the bulk of their money. They contract out the work of finding foreclosed properties and then improving and renting, aiming to hit a profit margin of 6 to 7 percent.
Buying foreclosure properties is not only cheap. It can also be turned into a business once it was rehab and there are people renting out the property. To get the best deals in foreclosure properties, it is important to study the market or to hire the right people who will help you in the entire process.