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Real Estate Growth: How Long Will It Last?
There has been speculation in the media recently about the fact that real estate will begin to fail and implode as it can only handle so much growth. In my humble opinion these theories don't hold a lot of merit and here is why. First, understand that there are three basic things that undercut the validity of saying that there is a real estate bubble that people are operating in.
1. There is no "international" or "national" real estate market.
2. The real estate market doesn't explode or crash.
3. The market has limited impact on the seasoned investor.
The Real Estate "Market" is an overall view of micro markets nation wide.
When people talk about real estate economics they are usually referring to national or international statistics which in truth are made up of thousands on micro or local real estate markets. So even though you might find a North America wide trend there are still many, many markets which will be completely at odds with the overall numbers.
Real Estate Markets do not "Crash."
We all remember October 19, 1987, known as "Black Monday." The stock market lost 22% of its value in one day - what investors call a "crash." History points to times which real estate values have taken 22% hits in certain cities and in pockets within cities. However, no real estate market dropped 22% in one day, one week or even one month. In fact, the real estate "crash" of the late 1980's took several years to bottom out in most markets.
Keep in mind too the overall performance of the real estate market you are investing in. Those of you who have been active in the Edmonton market the last few years might think that the market is in a slump or downslide, when in reality the numbers they are recording are far above what the average of the last decade show.
The market has limited impact on the seasoned investor.
No matter if you are holding properties long term or doing a quick flip, the local market changes will not affect you in a major way if you are careful. For example if you are doing long term hold revenue properties there is little to no chance that the market will not increase over the term of your holding period. If you are on the other hand flipping properties then you will buy at a higher price in a strong market and will move the property quickly, or get a better price which will help you in higher holding costs in a softer market.
Now, just as a side note for those of you looking at holding properties for future value considerations. If you are buying negative cash flow properties with the expectation of equity increase over 2-3 years then, in the words of a recent article that I read, SHAME ON YOU! If you are using investor's capital to close these deals and the value doesn't increase what are you going to do? What if the value decreases in that time? You are putting investor's capital at risk and as far as I am concerned are acting as an irresponsible speculator, not a seasoned real estate investor!
Steele Tolman teaches people how to successfully invest in real estate through the "Zero Down In Canada Real Estate Investing Home Study Course," web mentoring and seminars. http://www.motivagroup.com
How to Use Design Psychology to Stage Your Home for a Top-Dollar Sale
A new business venture to help home sellers, home staging, assists property owners in preparing their home for the best possible sale. Home stagers visit your home and either tell you how to redesign it or actually do the work for you.
So, You Wanna Buy Pre-Foreclosures?
So you wanna buy pre-foreclosures? or at the courthouse steps? So many people ask us about this. Here's our '30 second seminar' on it.
StagingŪ Your Home for Sale: a Superior Real Estate Home Marketing Technique: Part 1
Every Realtor KNOWS that a home should be shown in its best light to help sell it faster and for more money! We also know that, properly done, it Is a lot more than putting fragrant pies, breads or cookies in the oven, opening the drapes and turning on all the lights; although even that helps greatly.Setting the stage to obtain the highest value, fastest, for a home has recently evolved into a real estate specialty that can pay of grandly for the seller and help the buyer overcome the immense emotional strain of making a decision on which, of many similar properties, to purchase.
Where Does Your Real Estate Commission Fee Go - Why is The Commission so HIGH?
Many who have bought and sold properties through Realtors numerous times; even many real estate agents themselves, don't know where the commission money goes. After all, when a property sells for hundreds of thousands of dollars and the commission is tens of thousands of dollars, it seems like there is a terrific amount of money charged as commission -- and there is.
Walnut Creek Real Estate
Looking to relocate to a Californian suburb with a low crime rate, beautiful luxury homes and the convenience of being located just minutes from Oakland and San Francisco? Look no further than Walnut Creek. This city of just over 65,000 people is staying relatively stable in population, but new luxury homes are being constructed in this northern suburb all the time, and there are countless options.
Selling Your Own Home - Pet Issues
If you are selling you own home, you need to consider the effect of pets. People who are working with a real estate broker are sure to get coached about the potential negative effect of pets.
Ten Tips For Selling Your House
One of the biggest mistakes people make when selling a house, is not understanding real estate value. It doesn't matter at all what you think your home is worth.
Condo Hotels Offer Luxury and Great Investment Potential
Not Your Typical Vacation HomeWhat could be more perfect that owning a luxury vacation home at a landmark resort and receiving rent revenue whenever you're not using it? Condo hotels are the newest trend in vacation home ownership. Live in it when you're there; rent it when you're not.
Lake Property in Danbury
A lakeside vacation or second home can be a quiet and relaxing place to escape to, or simply a good investment in your financial future. Whether you enjoy the outdoor activities and recreation provided by one of Connecticut's beautiful lakes, or you just want a place to get away from it all, there is a lakeside home for you in Danbury.
Much Ado About Mansionization?
Is there a perpetual shadow hovering over your house? Do you feel as though you live in a Batman movie? You may be the victim of a neighboring McMansion or a new development trend called mansionization, the housing industry's equivalent to bigger portions and fast food.These mansionizers-who are frequently "spec" builders--buy small or dilapidated homes, raze them and erect massive structures, often resembling sterile apartment buildings.
Grab Your Dream UK Home On The Cheap - Property Auctions
Did you know that every year thousands of UK properties are sold at significantly below market value? The majority of these properties are released through property auctions where regular savings of between 10% to 40% are available to market value. Even so, property auctions continue to be used only by the elite and for the astute buyer/investor this generates a fantastic opportunity to secure a dream home/good investment at bargain basement prices.
Oh No! Something has Happened in Florida
The Florida housing market has attracted many foreigners to invest their hard earned money in the sunshine state. The British have for a long time favoured Florida for buying a second home.
Landlording And Other Aggravations
Here's the gripping story..
Dramatic Profits From Preconstruction Real Estate Investing
The preconstruction process is an innovative real estate investment opportunity in which you buy tomorrow's property at today's price. Preconstruction investing is a boon for the investor or buyer as well as the developer or builder.
Real Estate Financing - Ten Ways
Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for the other 80%? Well, you can still do that, but there are many more options now. Here are ten of them.
Property Investment - What Future For the Biggest Bubble of All Time?
The Economist magazine published a special report in this months issue entitled "House Prices ? After The Fall". Some might call it pessimistic, alarmist, nonsense or worse but only the foolish would choose to ignore the research that comes out of a think-tank with the kind of resources that this highly respected publication has.
Escrow Accounts - Are You Paying Too Much?
Money in escrow is "dead money". It doesn't earn interest for you and it doesn't reduce your mortgage interest payments.
Selling Houses: Design Psychology and Interior Colors
Interior colors are vitally important to selling your home quickly, and for more money. But you must always take your target market and selling season into account, using Design Psychology techniques, when choosing the colors for the inside of your home.
High Tension for the Buyer and Seller of Real Estate Can Be Reduced
Tensions can run high in both the selling and buying of real estate. After all, there is a lot of money and emotion involved! There are also time pressures and numerous privacy issues to deal with.
How to Make a Home for Sale Flyer Using Marketing Psychology
Want to sell your home right away, for the highest profit to you? Discover how to improve on the Realtor's number two sales tool--right after the sign--your sales flyer.Most real estate agents use a sales flyer template which showcases their listings using out-of-date marketing strategies.
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