Also, as I'm in the mortgage biz and I talk with RE investors almost everyday and peruse all the latest lender guidelines, it is MUCH harder to get a loan on an investment property than it was even 6-8 months ago. And if you can get one, it will cost you plenty- even with a conventional lender. That being said, about half of the RE investment deals that might look good on the surface do not look feasible after you consider all the financing and closing costs these days.
If you need any specific help or answers, feel free to look me up. Thanks, and good luck,
I can't speculate on what is to come for Boston Market in the next 5-10 years, though I would have to say with all the National negative media surrounding us we need to be optimistic as Broker, Buyers, and Sellers. Today in Boston, prices have dropped and many sellers are negotiating to get out of possibly bad mortgages etc. Though people are still buying, creditable people are still buying and yes!!!!, lenders are still lending with certain qualifications of course. Luckily we live in Boston and life really isn't that bad. I would have to say take advantage of this market if your in good standing as a long term investment.
Right now were learning from our mistakes, some folks are paying for it and others are reaping the benefits. The question is were do you fit???
If you need any assistance in your search for a condo in the Boston market, check us out! http://www.condoDomain.com
I have three answers to the proper question. The answers are:
2. SpongeBob SquarePants
3. Father Time
The proper question is (Pretend I am tearing off the end of the envelope and then blowing into said envolope in order to remove the proper question):
"Who the hell knows what the real estate market is going to do in the next two to three years?"
Just like in the stock market, greed will eventually take over. The buyers and investors included who have had their hands tied financially as well as waiting for the "bottom" will start buying property. That may lead to an increase in competition for the best priced/positioned properties. Since there is such a glut of homes on the market this may be a good thing. But not necessarily for the buyer, which is why I've been saying now is a great time to buy if you have to or really want to.
If a buyer waits too long and faces competition for the house they want, they may end up paying more and giving up important contingencies in order to make their deal work. Right back where we were in 2005.
I do hope though that we will see a slow increase in value. If you look at 2000 to 2008 and factor out 2005-2006, we have seen a slow, steady, predictable and sustainable pattern of appreciation. As inventories start to get back in line, and lending improves under tighter guidelines we'll see happy buyers and sellers for a change. The last 4 years we've either had happy sellers or happy buyers. Of course if you are a traditional home buyer who occupies or buys a second home, or an investor looking to take advantage of this market or the next one will determine how you see the glass.
That may not answer your question, and you'll no doubt see a long list of responses. Some of which will be from the doomsayers who will never be happy.