The housing market across the United States follows a very predictable pattern. House sales are always the strongest during the spring and summer months and the slowest during fall and winter. By all accounts, the housing market should slow down in December and January, but don’t let this downturn in housing sales fool you. The slow buying months of December and January are actually an ideal time to buy for house flippers.
Sellers are Anxious and Ready to Move
Most people who are trying to sell their homes during the holiday season are anxious to make a sale. Fewer people buying means a harder time selling, and most people who have their homes up for sale during the winter are trying to move as quickly as possible so that they don’t have to spend their own holidays in a state of transition. This means that you’ll likely get a better deal on a home purchased during the winter months. Additionally, interest rates are at an all-time low and will likely continue to drop. Over the last few decades federal interest rates have consistently dropped every December and January, and this year should be no different.
Less Competition, Better Selection
If you buy in December or January, you’ll also be faced with less competition. You may be competing against other savvy house flippers, but in general you’ll be engaged in fewer bidding wars and be able to obtain your investment property with less hassle and at a lower price than you would during the summer months, even with the current lack of single-family homes on the market. In addition, if you close you’re purchased before December 31, 2012, you’ll be able to deduct any mortgage interest from your taxable income for the year. You should also be able to deduct closing costs, which will help make your purchase even more affordable. Speak to your tax advisor to learn more about this.
If you purchase a house to flip in December or January, it should be ready to put back on the market by spring when buyers come back out in droves and asking prices go up. You can take advantage of this prime time to purchase investment properties with a rehab loan from ZINC Financial. The team at ZINC can help you assess any investment properties that you’re interested in and can provide you with a private money loan in as little as 7 to 10 business days. With ZINC Financial as your private money lender, you can make the most of this holiday season and begin the New Year with an exceptional return on your investment. Contact ZINC Financial today to learn more about our available loan programs and to get started with your investment immediately!