The Declining Real Estate Market Value: Now is the Time to Invest

As happening throughout the world, real estate market value is in decline due to the global recession. Foreclosures are in trend, and FSBOs are easily be seen everywhere. Is it a bad thing or a good thing?

honolulu homes
photo credit: Rachel Elaine

Opportunities for Real Estate Investors

I can tell that real estate investors are lurking somewhere, ready to make a move. Some are already make moves, investing in foreclosures, ready to ride the real estate wave that will start as soon as the recession worst moments are things in the past.

I think this is actually the time to invest – recession is your window of opportunity, for a simple reason: Market is in decline and some people are willing to sell lower than market value. If you can get adequate financing, even in the midst of rising mortgage rate, I would suggested you to invest sooner than later.

Remember, what’s come down, must come up.

Invest in foreclosures

I’ve searched the web and it seems that some resources recommend you to invest in foreclosures. There are two main strong points in investing in foreclosures.

Firstly, you can purchase a property that is lower than market value.

Secondly, you are actually helping the current property owner to clear the debt.

Take heed, though – there are a certain negative side of foreclosure investment – some people will know you for a person that take advantages over others’ problems. If this is not a problem with you, then by all means go for it :)

US Real Estates: I recommend Honolulu, Hawaii

If you consider not only real estate investments, but also Hawaii relocation, I suggest you to search yours in Honolulu, Hawaii.

According to Zillow.com, Hawaii Real Estate market value is declining 10 per cent this year, with the US national average of 7 per cent. Not to be misunderstood – this means opportunities – in big letters – for real estate investors. The higher than average decline means more affordable real estates in Hawaii.

Honolulu luxury homes and condos are the main target for relocation and investment.

According to Yahoo.com, with the median home value of $906,300 and the median income of $48,305, Honolulu is the place for higher-end living, and always-present market. Moreover, with the tropical weather all year round, and the typical luxury homes and a resort lifestyle, Honolulu, Hawaii is definitely the best choice for you.

In my humble opinion, real estates in tourist attraction region will always be in good market, regardless of the recession.

Please share your experience in real estate investing in current recession time.

Ivan Widjaya
Riding the wave