For the few that have managed to hold onto their money and have been smart with their investments can observe the opportunity of a lifetime. There is plenty of housing available for lower prices, however, potential buyers will either need to have excellent credit with a reasonably good income or have all of the money up-front. It can be a great investment but there is one major thing that investors need to think about before deciding to invest. How much in taxes will they have to pay at the end of the year?

The problem with investing these days is that the federal government is going to tax and tax the investor for any profits they made. This is going to effect or discourage any potential home buyers. If they have their lawyer involved and investigate how they will not lose so much at the end of the year then it would be an excellent investment. Once buying the home the investor can rent the home out. Since so many people are afraid to buy or have previously foreclosed on their home, they will need to be able to rent a place for a long period of time.

During August there were more than 303,000 homes that went under foreclosure. This is 27 percent more than the previous year. In comparison to the Great Depression there are about .6 percent of all housing units that are bank owned. This was the same during the infamous era that many politicians keep telling us we are not even close to.

Homes that are being sold after foreclosure can be bought for 20 to 30 percent lower than the market value. You may have a better chance for a better deal if you contact the owner during their pre-foreclosure stage of the foreclosure process. They will tell you how much they need in order to get out of the predicament they are in and depending on how long they have been paying on the home it could be as much as 50 to 80 percent off the market value. By helping those that are about to foreclose by purchasing their property you can also help yourself to a good investment.