Tuesday, July 24, 2012

Wall Street's hottest investment idea: Your house




All of a sudden, it seems, everyone on Wall Street wants a foreclosed home. Yes if you can believe Fortune --Your house might be a better investment than you think. At least Wall Street seems to think so.

For a while now the conventional wisdom on real estate has been that while home prices might not fall much more, they aren't likely to go up anytime soon either. The best personal finance advice, then, when it came to buying a house, was to buy as little as possible.

Apparently, though, on Wall Street that common wisdom about home prices is not held by all, or even many. In the past six months or so, a number of investment firms, hedge funds, private equity partnerships and real estate investors have turned into voracious buyers of single-family homes. And not just any homes, but foreclosures. Investment banks, who also want in on the action, are lining up financing options to keep the purchases going.

Take for instance private equity mega-firm Blackstone Group…..

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