First Time Buyers Face Challenges on Real Estate Investing Florida

Realestate investing Florida seems to be quite a challenge to many first time home buyers in the state. This is because there is an influx of sellers that are coming in to South Florida in order to take advantage of current housing prices, thereby out bidding first-time home property buyers.

The main issues that are going against these newcomers seem to be the lending guidelines that have become more strict since the housing market meltdown. Moreover, savvy investors that offer straight up cash money to purchase property are also another factor that buyers have to deal with.

A Third of Home Buyers

Based on data released by the National Association of Realtors, first time home buyers comprise about a third of the total number of real estate investors nationwide. They make up a significant economic force because not only do their purchases stimulate the housing market, they also stimulate other industries associated with it such as appliances, furniture, and other accouterments. This creates a ripple effect to other US businesses and is not simply advantageous or limited to the housing sector per se.

Even with so many advantages at their disposal, the biggest drawback that home buyers possess is the fact that most of their efforts are only possible with the assistance of financial lenders. If they have to choose between someone that can pay the full price upfront or with a financing offer, sellers most often choose the former as they are able to get instant gratification and no longer have to deal with annoying issues that can come with some lenders.

Where the Offers are coming

Most investors that prefer to pay cash up front are international buyers and corporate entities that view American home properties as a form of investment venture which they can profit from once the real estate cycle begins to come around. They are easier to work with as they have lesser demands when it comes to pre-finalization repairs as compared to FHA lenders. They prefer to purchase and repair later.

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US Real Estate Investment – Home Builders are Back

US real estate investment has indeed seen better days. Just several years back, the US housing market nearly went under as millions of sub prime loans began to default. Now it seems that US real estate is ready to put all those bad memories behind them.

On a clear day in the foothills of Orange County’s Santa Ana Mountains, a home builder surveys the undeveloped 387 acre property that is just fifty miles south of Los Angeles. This region is going to be developed by one of the country’ biggest luxury home builders. They plan to put up 1780 new homes in a joint venture with other home builders.

Burning Bush

It should not take a burning bush to signify that this is a sign that home builders have gained their footing and are going back to the US real estate market to make new investments. Experts believe that 2012 is clearly proving to be the year to see a sustained recovery.

The Naked Truth

It is no secret that a lot of private real estate builders went under during the height of the housing market disaster. Those that survived the massacre were able to do so by cutting back on new home construction, intense negotiating for the best price from supplies, and doing some renegotiating with land contracts. They were able to use whatever cash they had by purchasing cheap properties and taking part in government projects.

US home builders did so many cut backs in order to stay afloat that there were not enough homes available in order to keep up with the growth in the population. Housing inventory was pretty much in the red in such hard hit states as California, Florida, and Nevada. These places had many home property owners that owe more money to the bank than what their properties were worth and thus did not wanted to sell.

Demand Picking Up

If things keep going as they are, we can clearly see a sustained housing recovery in the coming years. As of now, there is evidence that there is more demand for new properties as the rest of the surplus inventory from foreclosures has begun to dry up. Moreover, there is also increasing demand from overseas international buyers who are looking to take advantage of the current housing prices.

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