According to a new Move, Inc., survey, interest in real estate as an investment has more than tripled in the past year. In fact, 17.2% of potential home buyers today say they plan to purchase a home in the near future as an investment compared to just 5.6% in March 2009.
The survey also found that 12.3% of Americans planning to purchase investment property in the near future will pay for the property using 100% cash, and 12.8% will use cash for more than 50% of the purchase price. Almost half (49.2%) say they will buy the property with less than 50% cash down and finance the remainder. The U.S. Census Bureau reported that one in three U.S. homes are owned free and clear, without a mortgage.
46.5% of these potential real estate investors say they plan to own the property for six or more years, 16% expect to hold the property between two and five years, while 10.6%between six and 24 months.
Reports released this week show foreclosures across the country rose in March. But, while interest by potential home buyers in purchasing a foreclosure to live in themselves has dropped in the past five months to 26.5%, this survey found interest in purchasing a foreclosure as an investment on the rise. In fact, interest in purchasing a foreclosure as an investment to fix it up and resell it rose from 11.3% in October 2009 to 16% in March 2010, a 42% increase.
Mercer County homeowners mirror the rest of the country in the finding that 49% of all homeowners would buy another home today if they could sell their current home for what they paid for it or more. This is especially true for homeowners ages 25 to 34 (68.2%). The economy is a very large factor in Hamilton real estate, and Mercer County in general. Move Chief Revenue Officer, Errol Samuelson, said, “Concerns around employment and their overall economic situation are causing many people to wait until the economy improves before they commit to one of the largest purchases they’ll most likely make in their lives. The findings of this newest survey make it clear the desire and motivation to be a homeowner remains strong, and as the economy continues to strengthen and improve, so will the housing market.”
To read more of the survey results, visit RISMedia.com and Move.com. Certainly, there are bargains for the asking, not just in Hamilton but Ewing, West and East Windsor, Robbinsville - all the communities in Mercer County. Contact me for some ideas on how you can turn your real estate purchase into an investment.
Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
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