San Diego, CA (PRWEB) January 20, 2013
The Real Estate Marketing Insider released some advice for homeowners who have no mortgage debt: use the historically-low mortgage rates and invest in a second property. The new property can be used, REMI said, to start a career in real estate investing, or obtain extra long-term income from a rental property.
Earlier this week, online listing and real estate website marketing giant Zillow announced that in 2012, almost a third of American homeowners owned their property without owing money on a mortgage. In the third quarter, mortgage-free homeowners made up about 30 percent of the home owning population. While that’s about the same proportion as in 2000, and the number varies considerably by region, it still represents a total of almost 21 million Americans. Although this number is 3 percent less than the number of mortgage-free owners in 2010, REMI believes the difference is due to an increase in bank lending from 2010, and not from a weaker economy or larger debt burden.
The Insider advised its mortgage-free homeowner readers not to rest on their laurels: buy a second property such as a San Diego vacation rental and begin a career as a home investor. Homeowners with no mortgage obligation enjoy sterling credit, a large asset for collateral, and other assets, that make them prime candidates for new mortgages. With loans at historic lows and cheap property readily available through foreclosures or short sales, investors can take out inexpensive mortgages to buy new property and quickly flip them. These new acquisitions can also be rented out, providing sustainable income for owners. There’s little downside, especially for homeowners whose personal properties are already bought and paid for.
The Real Estate Marketing Insider issued some advice for its mortgage-free readers. REMI believes that the 30 percent of homeowners with no mortgage responsibility should take advantage of historically low mortgage rates to start investing careers. The Insider advised these readers to purchase cheap properties using mortgages and flip them for profit.
About Real Estate Marketing Insider:
The Real Estate Marketing Insider provides insider analysis of the real estate market. REMI strives to bring realtors, homebuyers, and investors the best information and advice for their business or home transactions.