With news about job losses and factory closures getting a significant airtime and newspaper space, one should wonder: Should I delay my purchase of a house?
As the country is still battling the recession, it is but normal for one to think about delaying huge investments such as buying a car or a home. Ironically, experts say that if you have any plans of getting a new home, that time is today. Why?
- Property prices are down. – With demand for houses in the low, developers are bringing down prices just to sell houses.
- Property prices will rise again. – Experts predict a rebound in the real estate market when the country recovers from the economic slump.
- MOST IMPORTANTLY, REO properties are now cheaper than ever. – REO or real estate owned properties are one of the very few positive things brought by the recession. They are your ticket to owning a new house without drying up your savings.
REOs are assets repossessed by banks from those who failed to settle financial obligations. As more people fail to settle mortgages and other payments, more houses are also repossessed by banks. Banks want to dispose of these properties, which are officially listed in their inventories as “non-performing assets,” because they are costly to maintain. They could also affect a bank’s reputation, giving the notion that the lender is careless in handing out loans.
While the economic recession started from the sub-prime crisis, it also brought something positives in the housing sector – cheap and quality REO homes within the range of common people’s budgets.
