Fund: We're going to buy up repossessed homes

30 April 2008

A US investment fund is set to begin acquiring recently-repossessed homes bought back by banks due to the credit crunch, the Times reports.

In an interview with the newspaper, Weis Group said that it was currently discussing plans to spend part of its $1 billion portfolio on the properties.

Weis specialises in buying "distressed real estate" - homes that can no longer be paid for by its occupants.

Chairman and chief executive of the fund Adam Weis commented: "The properties we are looking to buy are not distressed in themselves - it is the market that is distressed.

"We are negotiating with the lenders who now have these properties on their books. In some cases, we are looking at buying the land at a 30 per cent discount."

The move is reflective of Mr Weis' belief that the US property market will rebound, due to a rising number of immigrants and an ageing population looking for retirement homes.

Meanwhile, a nationwide year-on-year house price drop of 12.7 per cent has been registered by the new S&P Case/Shiller survey, which covers the February 2007-February 2008 period.

The cities of Las Vegas, Miami and Phoenix were all found to have suffered declines exceeding 20 per cent, CNN Money reports.

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