Are foreclosures a good investment option?


Question:
I am interested in purchasing a home, however the market has gone through the roof. So I am considering buying a foreclosure. Is this a good option?

Or should I wait a little longer. With so many people buying homes with 5 to 7 year ARMs, maybe there will be a lot more inventory to choose from in the near future.

What should I do?

Answer:
Foreclousures often come with problems associated with them and be prepared often to sink money in repairs.

If you have the time, be selective and look at the foreclosure inventory prior to investing.

If you find that special property, please consider getting a home inspection. They run in the $400 range and may save you thousands in the end.

5-7 years is much to long to wait, as its possible that demand will increase higher cost and the cost of construction is increasing.
I agree with your ARM plan. Too many people are maxed to the limit. When the rug gets pulled, be ready with the cash. Keep your money in short term accounts. Try ING Direct.
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