First of all, let me address the issue of claiming a property as your primary residence when it is not...that is mortgage fraud. DON'T DO IT! There is no reason to lie on an application. The interest rates are low enough that it won't make a difference. Be straight with your lender and you will avoid future risk.
As to whether it is a good time to buy, it depends. If you do a comparison of rentals in the SPECIFIC NEIGHBORHOOD in which you plan to buy, along with the total cost of owning the property, and you can get a cash flow, then ANY property becomes a good investment. Appreciation should not be a factor when purchasing an investment property; it is a bonus that comes forth at time of sale or refinance, but should NEVER be used when calculating the value of an investment. The simple question is, can I make a cash flow on this property based on current, and trending, market rents. If the answer is yes, buy now. There is never a bad time to make a sound investment.
By the way, over 1/3 of the Los Angeles market is currently all cash buyers who are buying for investment, many of whom are foreign. So the anecdotal evidence suggests that your relative is in good company.
The Bremner Group at Coldwell Banker
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Have a great day,
Heather Paul, Realtor
There are many properties available that are 2 to 4 units, where you would be able to invest your money, obtain a loan, rent out the other units and live in one. You would want to look for properties that would give you a positive cash flow, even if it is just $1.
The best way to determine your buying power is to actually submit your information to a mortgage broker and get pre-qualified, where they would be able to tell you what types of loans are available and what your purchase price would be.
I would start there. If you need a mortgage broker and if you would like to see what types of properties are available, feel free to contact me and I will be more than happy to send you information.
Good luck and all the best,
Kat Becker, Realtor
Prudential California Realty
We are a RE Broker, investor, contractor, architetural, landscape and interior design all owned and operated by one family. We have over 50 years of combined experience in the real estate investment, development and construction businesss and would love to work with you should you ever decide to invest in San Diego.
Best of luck.
Keller Williams Realty
Smart real estate investors buy for cash flow. Therefore, whenever you can invest in a property that comfortably fits within your monthly budget and generates positive cash flow it's a good time to buy.
It's also important to note that there are good and bad deals in every type of real estate market. Therefore you will need to evaluate each deal individually do best answer your question.
The benefits for investors in a declining market are two fold: 1) money is cheap / interest rates are low, and 2) there are more opportunities to buy for current cash flow and long term appreciation.
As one of my colleagues noted below, appreciation is the icing on the cake. Our current housing market has shown many novice investors that appreciation can disappear quickly, it's cash flow that keeps you in business.
Assuming you occupy one of the units, getting an owner occupied loan will allow you to leverage your purchase more (eg. less down payment) which will make the return on your money better. It will also give you the added tax benefits afforded to owners with their primary residence.
If you decide not to occupy the property, don't fret. There are many lenders who can lend 85% to 90% of the purchase price for investor purchases.
Foreign or domestic many successful investors are buying in today's market. There are many opportunities, just remember to do your homework and don't leave common sense at the door.
Best of Luck
Allan S. Glass
ASG Real Estate Inc. Â®
149 S. Barrington Ave, Suite #660
Los Angeles . CA 90049
Direct: 213.973.8637 (213.97.FUNDS)
CA License: 01154002
Visit Allanâ€™s Blog: http://allanglass.featuredblog.com
It's a great time to buy, even though, there are pessimism and optimism. There's no crystal ball. BUT,
if the numbers make sense in your investment, go ahead and hold it until appraise higher for resale.
There has never been a better time for the smart shopper.....not all offerings represent value and opportunity but for the discriminating and patient buyer that is well represented.....this IS the time!
As a "co-signer" all parties should carefully understand the terms and conditions of this type of agreement. A co-signer is essentially contractually commiting to assume the loan responsibilities should the primary borrower not. Historically, these situations have created nightmares for family and friends when they don't work out. Be sure it's the right thing for you and the borrower that you are supporting is VERY responsible.
Sure, it is definitely a good time to buy investment property. When you think about it, how ofter are there low prices combined with low interest rates. It has not happened in decades - in the past, when prices were low, rates were usually high, and vice versa. Now is absolutely a great time to buy - with that much of a down payment you should be able to keep your mortgage payments low enough to get positive cash flow from the rental. With the price of gas, areas like downtown with close proximity to public transportation are quite likely the hot areas of the future. Let me know if you have any questions & good luck..
Coldwell Banker Residential Brokerage