While it is certainly difficult to imagine when you are in the throes of a deep recession, history and economics all point to the cyclical nature of recessions. History tells us that since 1854 we have gone through 52 specific examples of a recession and boom, or a process of expansion and contraction, in the USA. The figures tell us that on average, a contraction will last for a year and a half and an average expansion for just a little more than three years. Since 1980 we have seen very few of these recessionary times and much more plentiful economies, but this all ended in December 2007, when the greatest recession in our history arrived.
Now the economists and historians must rewrite the history books to explain what happened, but we will undoubtedly see in the future that this is also just part of an expansion and contraction momentum. We’re now entering a period of expansion and can expect all economic indicators to gradually improve. We hear so much about the unemployment rate being so high and likely to stay that way for some time and it appears that we will all have a hangover of some kind, even as the economy starts to strengthen. Nevertheless, now is the time to be brave and this is certainly a great time to consider a real estate purchase, much better than any in the past few years.
Many hundreds of thousands of people have been severely affected by the recession, due to job loss, layoffs or other issues. This has led many people to lose financial capital, or to see their credit scores diminish due to difficulty. Surely, buying a home with poor credit is impossible now in the shadow of this recession, as banks simply do not want to even consider the concept! You may well be one of those first time home buyers with bad credit and may be sad because you think you are looking around for a shred of comfort, during one of the worst times possible. You really need to look at the situation differently though, as buying a house with poor credit is not impossible, indeed you may be able to do this with a smaller than average deposit, as well.
In Detroit, its surrounding suburbs and other areas of Michigan, land contracts are becoming more popular instruments. These instruments are protected by state law and give many people a way forward when they fall on bad times and think they have nowhere to turn. Make sure that you investigate land contracts as one of your options and make sure that you move forward and capitalize on opportunities available now. You can find the home of your dreams and make a life for you and your family, even though you thought all the chips were down. It is certainly nice to see that this greatest recession is mostly over and to shake ourselves off and now concentrate on the brighter times ahead and in our future. Go for it, and make the change in your life, today!