Palm Desert Foreclosures Are Selling At A Huge Discount

We all know we need to invest, but how do we do it safely. Most people invest in stock market in one way or another, but how do we know we are buying at the right time. Investment advisers and the financial news tell us we need to invest steadily to take advantage of the market’s ups and downs. But what happens after we are retired, and we can’t handle the down part. For the last 10 years interest rates have been so low that it’s been almost impossible to get a decent return. The stock and bond markets are full of problems right now.

Real estate is a different story. When you buy property you’ve got something tangible. You’ve got something you can see, feel and use. You can live in it, or you can lease it out, or you can sell it. Right now if you’re investing in Palm Desert California property, you can get a great deal. There are thousands of properties, in Palm Desert, that are either in foreclosure are headed for foreclosure.

You can buy some of these properties for 50% of what the previous owner paid. You can buy residential property or commercial property that is being sold to the highest bidder. For example, on West Lucky Way there is a house that had $613,000 in loans on it and it is now valued at $320,000 as of April 14, 2010. I’m looking at another on W. Chestnut Ave. that ForeclosureRadar values at $164,000 and it has loans on it of 436,000. Foreclosure Radar estimates that the Cap Rate on that property is 19.5% and the estimated rent is $2672 a month. That sounds like something worth looking at.

Real Estate has a lot of investment advantages. In our current market that is especially the case. The foreclosure crisis has forced a glut of property onto market and it is a real buyers paradise right now. This is the first time in years that an investor can buy a property in California and rent it out for a positive cash flow. People still need to live in houses, they just can’t afford the mortgages that were created at the height of the bubble.

So if you can buy property for half what it sold for five or six years ago you can probably afford to lease it to the same people who tried to buy it back then. They can easily afford to pay the rent on a property that was purchased at half the price it was a few years ago.

Another great advantage that investors have today is that we currently have the lowest interest rates in decades. It can’t last long, but interest rates today are lower than 5%. My sister just bought a house in Palm Desert, California and got a 30 year fixed interest rate of 4.62%. This combination of low prices and low interest rates is very favorable to investors who want to rent out their properties for profit.

There are a lot of free financial calculators on the Internet that will let you calculate exactly how great a deal you can get. Try one and you will see that now is a great time to buy foreclosed property in Palm Desert, California.

Get free ForeclosureRadar search at www.PalmDesertForeclosures.org. Get the ultimate low down instantly in our Palm Desert Foreclosures overview.

categories: real estate,real estate investing,foreclosure,foreclosures,investing,reo,bank owned property,home,house,property