Real Estate – In the world of foreclosures, Cash is King!
Categories: Buying Real Estate, Foreclosures, Real Estate News
hiYes it is true, there are many bargains in Miami. For those who waited until the market turned it may be too late to come to the foreclosure party unless you have cash to buy.
With government doing the wrong thing at the wrong time and banks being extra cautious, the term “money talks” has greater significance today. Particularly in the world of foreclosure properties cash is King as buyers scramble to take advantage of the many bargains.
Early this year Fannie-Mae instituted new lending guidelines that make many South Florida condos impossible to finance. Then the County Commission passed the new Certificate of Use Ordinance 2008-133 that requires an inspection and a record of code violations of all foreclosed properties–making it almost impossible to finance these properties.
The result is a sea of foreign investors coming to our shores with cash ready to buy. Needless to say these cash buyers are taking the plums and the lower income people in our area who could have taken advantage of these low priced properties are left with the pits.
By the time your Dade County Commissioners realize the damage they have caused, it will be December 1, 2009 and first time buyers will have lost their opportunity to get $8000 to buy these homes.
At first this was happening in the lower priced properties under $300,000, but we are now seeing this happening at all price ranges. The surprising part is to find out how much cash is available and how quickly the oversupply of properties is being absorbed.
I am not prepared at this point to say that we may be staring at a new boom in the near future, but if demand continues to increase and builders do not start building again, we could have a shortage of housing again in about two years.
But the world economy is still weak and anything could spook the buyers, so it is better to be careful and invest with knowledge and common sense. But if you have cash, you are probably going to make a killing at this time…in today’s market, Cash is King!
