Why Real Estate Investors Shouldn’t Expect A Repeat Of 2008

Executive Vice President at RealtyTrac, the leading source of distressed property data for investors and real estate professionals. 

Historically, there’s been a strong correlation between unemployment and foreclosures. Job loss typically results in mortgage delinquencies – which ultimately lead to foreclosures. Given the number of jobs lost during the Covid-19 pandemic, many people may be expecting to see foreclosure activity reach – or even surpass – the record levels seen during the Great Recession.

But this recession is different from prior ones, and there’s strong evidence that suggests that the level of foreclosure activity it causes may be different as well.

Won’t Record Unemployment Lead To Record Levels Of Default?

The Covid-19 recession was unprecedented in its speed and severity, as the government issued shelter-in-place orders in an attempt to slow down the spread of the disease. Unemployment rates skyrocketed, and nearly 50 million Americans have filed for

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Why you shouldn’t buy a house in a poorer suburb in Australia



a sign on the side of a building: MailOnline logo


© Provided by Daily Mail
MailOnline logo

Young Australians are being warned to avoid snapping up property in cheap suburbs as first-home buyer incentives are extended.

This month’s Budget offered a new round of the First Home Loan Deposit Scheme where property newcomers only need to stump up a five per cent deposit as taxpayers underwrite the rest of the 20 per cent deposit. 

Metropole Property Strategists director Michael Yardney said prospective first-home buyers looking to buy an investment property needed to be wary of poorer suburbs – even if they offered higher rental yields.

‘Cheap properties that command relatively high rents might sound enticing, but these tend to be located in poor capital growth suburbs or in lower socio-economic areas and you should be wary of the potential pitfalls,’ he said.



a house that has a sign on the side of a building: Metropole Property Strategists director Michael Yardney said prospective first-home buyers looking to buy an investment property needed to be wary of poorer suburbs - even if they offered higher rental yields. Pictured is a house at Mount Druitt in western Sydney


© Provided by Daily Mail
Metropole Property Strategists director Michael Yardney said prospective first-home buyers looking to buy

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