The Record Searchlight had a great article today about local people investing in foreclosures. Where would you go to see local foreclosure homes for sale listed all in one place? We humbly suggest the link below:
Today we feature good news and bad news. The bad news is stocks are being hammered today.
So what’s the good news? Redding area real estate prices are a bargain. Rates are lower than they have been in years. And there exists a way for you to use a Self-Directed IRA to invest your retirement savings into a hard asset, real estate. We may not be at the market bottom, whatever that means, but foreclosure home prices are surely lower than replacement costs. Move your money out of the stockmarket casino, and into something that lasts.
We’ve helped others accomplish this. Read here about one local investor who used FDotD FTW!
See the before and after images!
Don’t just take our word for it. Try this fun online calculator put up by the New York Times. The average sale price of the 410 homes that have sold in Redding since the beginning of the year is $193,863. That gets you an average 1731 sqft home for about $108 per sqft, all averages this year. Here’s the results of the calculator using that average, and some typical financing options.
So after 4 years, it’s better to own. Click on the image to go to the live online calculator and try some different scenarios. Thanks NYT.
5 or 6 years ago, there was no way it made sense to buy. Now, that’s not true. If you plan on staying, and especially if you make the right choices for location and improvements, it really makes sense to buy.
We caution most folks that homes should be looked upon as residences, not investments. Still, investors do buy real estate. And if you choose not to be a real estate investor, and instead take the widely repeated advice to buy and hold equities, you may be subject to a lot more volatility than the “common wisdom” advice implies.
We love the interactive charts of the New York Times. Nobody does them better. this one shows you just how variable your investment returns are over a 20 year time frame. The chart is a bit hard to understand at first, but once you get it, the results are fascinating. What you get depends on when you start, and when you end. Sounds logical enough, but seeing it illustrated so plainly is enlightening. Extrapolating, this insight applies to real estate investments as well. Click on the image to view. Thanks NYT.
