For Immediate Release
Contact: Erin Beale, ebeale@taipangroup.com, (410) 454-0410
http://www.taipanfinancialnews.com
The Next Big Real Estate Boom: Cashing in on Delinquent Taxes
Baltimore, MD - Nov. 6, 2006 - As U.S. home prices free-fall, a new big boom for real estate investors has started taking place… in delinquent property taxes.
The real estate triple play of shrinking home prices, negative equity and increasing foreclosures are all contributing to an epidemic in delinquent property taxes. The current downturn in residential real estate puts homeowners at the greatest risk since perhaps the 1970s in failing to pay their taxes.
For governments, delinquent property taxes create a budget shortfall for essential services such as police, education and sanitation. To keep the coffers full, states offer “secret certificate” programs that let individual investors make money from delinquent property taxes.
These “secret certificate” programs can deliver returns of 24% and more. While Iowa guarantees a 24% return, Illinois offers 36% and Michigan’s guarantee can hit 50%.
The Biggest Price Drop Since 1970
Most recently, prices for newly built homes have suffered their largest drop since 1970 – decreasing 9.7% in September compared with the same year-ago period. Existing prices, especially in the hottest markets, are also in steep decline.
The National Association of Realtors reported that prices of existing homes fell 2.2% in September 2006 compared with September 2005. It was the biggest one-year decline since November 1990.
Foreclosures Hit Record Highs
Declining prices and rising mortgage rates caused a record number of homes to fall into foreclosure as of August: 115,292 properties, according to RealtyTrac.
Previously sizzling markets are getting hit bad. Home foreclosures in Nevada more than doubled in the past year, reaching 1,919 in September.
California foreclosures hit a four-year high. Lending institutions sent out 26,705 default notices homeowners for the three-months ending in September. And Florida has one new foreclosure filing for every 254 households – more than four times the national average.
But overall, the slump in the U.S. real estate market can create a new opportunity for investors in “secret certificate” programs, as states scramble to collect delinquent taxes. For more information on this current investment opportunity in real estate, visit our special report here.
The flagship publication of Taipan Financial News is the investment service, Taipan, published by the Taipan Group, LLC, a Baltimore-based publishing company headed by J. Christoph Amberger, author of Hot Trading Secrets, and the free e-letter, Dynamic Market Alert (www.dynamicmarketalert.com).
The Taipan bulletin - available by private subscription only - is a window to the investment future, finding opportunities that Wall Street won't tell you about, including investment strategies in value and technical investing, U.S. stocks, overseas markets, start-ups, blue chips, bonds and options.
For more information on Taipan, or the investment opportunities from the secret certificates, contact Erin Beale: ebeale@taipangroup.com, (410) 454-0410.
Source: Taipan Financial News (www.taipanfinancialnews.com)