The Real Estate Marketing Insider is advising homeowners who have paid off their mortgage to take advantage of historically low mortgage rates to buy a second property. According to REMI this second property could be used to start a career in real estate investing, or can be used to provide additional long-term income from a rental property.
Leading real estate analysts Zillow say that around a third of American homeowners are mortgage free, representing almost 21 million people. This figure is around 3% less than the number of mortgage free owners in 2010, but REMI believes this is due to an increase in bank lending compared to 2010, and isn’t due to a larger debt burden or a weaker economy.
As such, REMI is advising mortgage free home owner readers to buy a second property, as this sector enjoys good credit, and have a large asset for collateral, both of which makes them prime candidates for new mortgages.
There are numerous cheap properties still available through short sales or through foreclosures, and with loans at historic lows, investors are able to take out inexpensive mortgages to buy new property and can quickly flip them. They can also be rented out providing sustainable income for the owners. There is little risk for homeowners whose personal properties are already bought and paid for.