Young and Lucky

admin — Thu, 09 Apr 2009 13:22:54 +0000

If you are a young person like myself that has the capability to buy a house, do it. Home prices have fallen close to 30% nationally since last year. You can steal a house worth $400,000 in 2008 for $250,000 today. I really do feel bad for the people that are losing their homes, but we must also make somebody else benefit from these banks risky investments. I grew up in a middle class neighborhood where home prices have been above $300,000 for the last 8 years. Two homes are currently on the market for the low to mid threes. I was pissed when I saw that one of my neighbors homes was stolen at auction for $130,000. Rates are at historical lows. Foreclosures are definitely risky, but do your research and you will benefit. Even if you can’t manage interesting ways to come up with the down payment, offer homeowners on the brink of foreclosure rental agreements with options to buy. Set up a legal binding agreement where you will rent the home for two years with 66% of the rent going towards a down payment. Think about it, they can’t sell and you pay the mortgage saving them foreclosure embarrassment. You get an agreement with sales price based on current market value and a way to leverage your rent towards a down payment.

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Young and Lucky