The Sydney Morning Herald recently reported Aussie home sellers are experiencing falling real estate prices and thus, “negative equity” is increasing.

“Given it has been 16 years since the last recession,” the paper reports, “long-time estate agents fear the fate of a generation of owners who had not experienced having a loan when times were tough.  

St. Mary’s agent, Michael Beatty said: ‘There was a wave of people punting on the expectation of constant price rises until well into 2004, even after the three interest rate rises of late 2003.  There has been significant price deflation and many now have negative equity in their homes.’” 

How would you like to have bought a home three years ago for $450,000…and borrowed $405,000 to do it, then had to sell it in today’s market for $260,000?  What about having your home sit on the market for months without a single offer?  

Not fun.  It fact, it’s making home sellers sick to their stomach.

The Aussie housing market is slumping after only 3 interest rate hikes.  What happens when you take a nation of home owners on ARMs and barage them with 17 straight interest rate hikes?  Could what’s happening in Australia be a precursor of things to come in the USA?

That’s why is so important to…

Be smart about real estate investing by following the 4-step recipe:

1. Buy discount real estate property - foreclosures, pre-foreclosures, tax sales, real estate auctions, real estate repos and other distressed-seller opportunities.
2. Consider commercial real estate investments - apartment buildings, retail centers, storage unit facilities, office buildings.  I have provided you with an awesome commercial loan resource at my website to buy these properties with as little as 10% down (even 5% down on certain property types).
3. Buy in Bargainville - the next hot emerging real estate markets across the country.  
4. Get a mentor.  Learn from real estate investing experts who have already done this successfully.  There are a number of them featured in the Real Estate Investing Topics Section of my website.

Technorati tags: commercial mortgage loan, commercial real estate, real estate investing, foreclosures

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