Investors in Real Estate are more interested now – Survey
Foreclosure crisis; economic down-turn; uncertainty of the market trend; and financial crunch – all these are the minus points of housing markets in US today. Yet the latest Survey conducted by Move Inc. among prospective American home buyers, shows that interest in real estate as an investment has more than tripled in the last year.
The Survey panelist potential home buyers – 17.2% of them say they have plans to buy a home as an investment in the near future – whereas only 5.6% said so during March 2009 – nearly triple time increase. Regarding resources for property purchase, 12.3% of Americans are planning to buy a home in the near future by using 100% down cash; and 12.8% said they will use cash for more than half of the investment through cash and seek finance for the rest of the payment.
Those who will buy the property with less than 50 percent of payment by cash down, and seek financial help for the remainder was 49.2%. It is pertinent to note here that according to the U.S. Census Bureau, one in three U.S. homes are owned by purchasers free and clear, without a mortgage.
How many years they plan to own the homes they buy? For this pertinent question, nearly half of the potential investors in US real estate surveyed – 46.5% to be exact – answered that they plan to own the property for six or more years; 16% of them said they anticipate to hold the purchased home between two and five years; and only 10.6% investors said owning the property for shorter duration of 6 and 24 months.
Will they buy a foreclosure property and live themselves there? The affirmative answer to this question has dropped by 31.1% in the past five months and stood at 26.5% of the Survey panelists saying “Yes”. However, this new Survey by Move Inc. has found that peoples’ interest in purchasing a foreclosure property as an investment – with a view to fix it up and resell – rose by a good 42% – from 11.3% in October 2009 to 16% in March 2010.
So as per voluntary opinions gathered from the above Survey, one can surmise that generally people are interested in making investment in foreclosure properties.
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