Today’s Talking Point 11/20/09
Move.com survey results:
Just more than 12% of potential home buyers surveyed plan to purchase a home as an investment property compared with less than 6% who said the same seven months ago.
Of those interested in buying a foreclosure, 42% were investors. About 13% of those investors would turn their foreclosures into rentals, 11% would fix them up for resale and 17% said the houses would be used by a family member until the home could be sold for a profit.
Of all potential buyers interested in purchasing a home — both for investment and to live in — 25% said they want to buy a foreclosure.
Of the potential buyers polled, 58% said they expect to pay at least 20% less than market price for a foreclosure, and 39% said they expected a 25% or greater discount.
Seventy-three percent expect their properties to appreciate 10% or more in five years; 28% expect their purchases to appreciate 20% or more during the same time.
The most popular reasons given for taking action now: concern that prices have hit a bottom and a desire to take advantage of bargains, according to the results.