The rate of foreclosures due to delinquent payments has doubled since 2010. This has created a large supply of real estate owned property on the market. This allows small business owners to take advantage of the need to maintain these foreclosed properties. Property preservation businesses help to clean foreclosed properties so that they can be presented to prospective buyers. Economic conditions and other factors help make a property preservation business a safe business in the current economy. Even as the economy improves, the property preservation business continues to be a safe business for a variety of reasons.
Why Is Now the Best Time to Own a Property Preservation Business?
Each month 10% of houses are foreclosed upon borrowers that have drastically fallen behind on their mortgage payments. This increases the amount of houses that need to be cleaned and maintained, providing a perfect opportunity for a property preservation business. As more foreclosed houses are in need of cleaning services, property preservation business owners have more opportunities to make profits. Anytime that there is an increase in a demand for services, the business can charge a higher price to complete the service. While banks need property preservation businesses to clean out the foreclosed properties, the increase in foreclosed properties makes the value of houses in the area lower. This makes houses more affordable for first time homebuyers. Banks want to make their properties more attractive and valuable to potential homebuyers, so this also increases the workload for property preservation businesses.
Why A Property Preservation Business Will Continue to Be a Safe Business as the Economy Improves
Even if the slow economy suddenly shifts to a prosperous economy, millions of foreclosed properties are still on the real estate market. It will take years to prepare all of these houses for sale. During the early years of the 21st century, the housing market created a lending craze and provided mortgages for homebuyers who probably did not qualify under more stringent standards. Although the number of foreclosures seems to have dramatically shifted since 2010, the number of foreclosures is actually more aligned with the foreclosure statistics of the 1990s in which there was a 10 to 14% rate of foreclosures. Since this number represents a more stable percentage of foreclosures, there is not much of a difference between the rate of foreclosures during this slow economy and the more prosperous economy of the previous decade.
A property preservation business is a safe business to run since there are so many foreclosed properties on the market. There will always be foreclosed properties, so the current economy or a more prosperous economy correlate with the continuing need of the property preservation business.
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