Real estate prices sparking investment

As the first time home buyer tax credit comes to a close, savvy real estate investors are beginning to look at the low prices for homes in predominately black neighborhoods as a way to gain higher returns than equally low interest rates.

One investor who paid $75,000 cash for a house in Oakland, CA notes that he would have only generated less than $1,000 in interest on the same money.   He hopes to generate instead $15,000 per year in rent.

It has been more than 20 years since one could buy a house for so little anywhere in the San Francisco Bay Area, perennially one of the highest cost markets in the nation.

Even better deals can be found in other cities.   A blog called http://www.urbandetroitonline.com has drawn worldwide interest to the opportunities to buy houses for as little as $5,000 in Detroit, MI.

There is often a disconnect between those who have the available cash to purchase and those who need housing.

Yet these prices offer the opportunity for non-profits, investment clubs and individuals to make a substantial profit while meeting the need for affordable housing.

Fixing up such properties also creates a business opportunity and jobs.

The flip side of the subprime mortgage crisis, which saw thousands flood into the Cow Palace outside San Francisco for mortgage adjustments for the past week, is that prices are coming down to normal.

With new assistance from the Obama administration to state housing finance agencies announced this week and the last few weeks of the first time home buyer tax credit, everyone should look at acquiring some real estate.

For families and individuals who have not begun saving for retirement, this offers an opportunity to jump start a nest egg for later living.