Cashing In on the Less Fortunate
Foreclosures in the Denver area are up 15%. My parents wanted me to look around this area for an investment property for them, as this is a growing area and interest rates are low. I've been demurring as I think there is a housing bubble and renters will make out better than owners.
Quite a few houses in the neighborhood have been for sale for a few months, and I keep seeing more signs going up. A house near us sold pretty quickly, major work was done on it, then the "For Sale" sign went up again. I haven't even seen anyone come look at it. Walking by a house for sale that backs up to the park, I mentioned to my husband, "Here's one for sale." The owner was sitting on the porch and began jokingly making the case for why we should buy it. She said the market's not been too good.
She may be the "Duchess of Doom" and the "Guru of Gloom," but when it comes to a large investment like housing, I'm going to listen to Tucker Hart Adams.
Adams predicted that the foreclosure problem, although not as severe as in the late 1980s, will get worse before it gets better.
". . . Foreclosures are a lagging indicator, which means when a whole lot of other things are getting better, we're still going to have foreclosures."
I'll wait until things are getting better and snatch up a foreclosure.