My clients ask me what do I think about the real estate market. Are we at the bottom? Do we have more years of foreclosure/short sale and distressed situations? Instead of answering these questions, it is best to look at real estate as an investment. Whatever property you buy, it is my recommendation you focus on the rate of return (even if you are an owner occupant buyer). The goal should be to always buy a property that "pencils."
Buyer Tip: if the typical rent would pay your mortgage on a potential purchase...ITS A GOOD DEAL! For all cash buyers, a 8% return on your money or better sure beats what you will get from bank interest rates, government bonds, and in most cases, stocks and mutual funds. If nothing else, purchasing investment property is a good way to diversify your funds.
Buyers...interest rates are still very low. This is still an excellent time to buy a property in the Sacramento Area.
Michael Gesner and his team have sold many foreclosure homes representing sellers and buyers. Foreclosure purchases are a good opportunity for buyers to get a value property. Foreclosed properties, unlike short sales, are a much more straight forward purchase (they close!)
