|Real Estate Information|
The Real Estate Bubble Fallacy
There has been a lot of talk lately about the "Real Estate Bubble", and a lot of folks are asking the question: "When it is going to burst"
They are saying that the market just cant sustain this level of growth and appreciation much longer, and I heat them say that it is inevitable that it must come crashing down soon. People are worried. They dont think it can last; That whatever goes up, must come down.
These folks have been conditioned to believe what they believe most likely from the experience of the stock market bubble of 2000, and maybe the 1990s when the real estate market was hit hard in many large metropolitan areas across the country.
Its human nature to feel this way. We all know the saying or the 80s tune for you big hair folks, "Once Bitten, Twice Shy". Or what about, "All good things must come to an end." Its how we react to almost everything that affects our well being and general safety. Its a subconscious reaction at the gut level.
Just like in the stock market, there are bulls and bears. Bulls are typically more optimistic about the market and expect it go up, and bears are generally more pessimistic and expect the market to go down. They will always be there to provide free advice and "expert consulting". Remember though, who you decide to listen to will certainly have an effect on your decision making, and ultimately your success.
Well, Im here to say that there is no real estate bubble! There never was a real estate bubble. Its a complete and utter fallacy.
"How can I say that" you ask. I can say that because the real estate market is in reality, a Wave. Its a cycle, and we just happen to be riding the big swells, or the crest of this long, consistent, and fairly predictable pattern.
There is no doubt that real estate has been a rock solid investment for decades, and will continue to be for the foreseeable future and for many reasons that I would like to demonstrate here and now. Because you, as a real estate investor, must be able to move forward with confidence when deciding which projects and properties you want to buy and sell. That is the purpose of my website, www.realestateinvestment.net, to provide you timely information, strategies and techniques to help you succeed.
But first, what is a bubble In terms of economics and markets, the best definition is probably something along the lines of "an isolated or ephemeral situation or condition with little support or substantiation from external conditions".
The best example, and the one foremost in the minds of us all, is the stock market tech bubble of 1999 and 2000. We all rushed into the tech stocks and the stock market in general as we saw the .com millionaires being made.
Y2K was a big factor in the tech bubble. People were buying new systems at a unprecedented rate in order to prepare for doomsday. People were also buying consumable goods to stock up for the dreadful event that never came.
So what was holding up, or supporting the "irrational exuberance" as Alan Greenspan characterized it Well, we learned soon afterward, not much. It was an isolated, temporary incident that had little support from the other conditions. It was indeed like a bubble that burst.
And it has had little support since then. Historically speaking, after the stock market crash of 1929 and 1987, it took decades for the market to recover, although it did eventually recover. Just look at the Dow average and the S&P average for the last hundred years and see the pattern of recovery. You can be sure that a slow steady rise for stocks is in progress.
Now back to real estate. Let me explain why this is not a bubble.
Real Estate is Cyclic
Real estate has had its ups and downs over the years, but it is generally stable, with no drastic swings per se. If you were to look at the cycles on a chart you would see a clear pattern of gently rolling swells. This pattern is consistent across cities and regions all across the United states, although slightly varied in degree.
In addition, the cycles tend to favor the ups rather than the downs. It is not uncommon to see large cycles of appreciation and much smaller downward cycles. In other words, the current double-digit growth weve all come to know and love in recent years will likely be followed by downturns of single digit declines. Its like taking two steps forward and one step back.
In the big picture you will still be further ahead than when you started. You may see slower growth, but it will still be growth.
Real Estate is a Basic Necessity
People need to live somewhere. They need a roof over their head and their childrens heads. Like food and clothing we must have a home. People dont need stocks or bonds. Therefore, you can be sure that whether the market is high or low in growth, whether interest rates are up or down, people will be buying, renting, leasing, and selling homes. It is as perennial as the years.
This Real Estate Wave Has Been Around Awhile
I dont know when you first realized we were in an up market in real estate, but it has been on a solid upward trend for at least the last 3-4 years. It didnt just happen yesterday. Of course like anything else, awareness of the general public is a bit latent, and dependant upon the media. It has only been lately that the media has really focused on it and thrust it onto the front page.
The old adage "Success breeds success" is also true. The momentum will grow as other more traditional investors continue to jump on the band wagon and pour their money and resources into real estate investment. It tends to create a perpetual, self-feeding market that is ideal for more seasoned investors.
Real Estate is Local and Regional
It is true that even in todays real estate boom, there are areas in the United States that are not enjoying the high rates of return that others are experiencing. California is a fantastic place to invest, so is Arizona and a host of other places.But the Rust Belt states are not as fortunate. Watch what happens to Florida home values after this horrendous hurricane season. This is because real estate is driven by the primary capitalistic force of Supply and Demand.
Generally speaking, property values increase in areas where the job market is strong, and where there are more people moving into than away from. Of course there are other factors to consider; including interest rates, availability of funding, climate, and governmental policies. These are all important and you must be cognizant of their impacts to your strategy.
However, it is true no that matter what the rates are or how nice the climate is, people will continue to migrate where there are abundant job markets and affordable housing. If you can stay just slightly ahead of that migration, you will profit immensely.
Real Estate Investing is Diverse
You can invest in so many different ways, from foreclosures and fix and flips, to buy and hold and everything in between. Right now the commercial space is relatively soft. It will recover no doubt, but people investing in single family homes are probably doing slightly better in returns. Vacancies are up and rents are down for commercial properties, but fortunately, the forecast is for this sector to improve over the next few years.
The key to successful real estate investing is to understand the forces, trends, and conditions that are driving the market. BE AWARE of your surroundings; Read articles and stay on top of industry news; Look in your own area at the job market and forecasts. Check my website www.realestateinvestment.net for all the news and information you need to help you succeed in your real estate investing career.
There is no real estate bubble, but there is a real estate wave. Like any dedicated surfer, when the surfs up, get in the water and catch a wave! But watch for danger, be flexible, and be smart. Invest wisely and you can prosper in any real estate market.
Hire Divorce Lawyer or Use Online Divorce Forms
When do you need to hire a family law attorney and when is it okay to just use an online divorce form website to save a little moneyThis article will provide a few pointers to help you decide whether to do it yourself or retain a divorce lawyer.
More Bang for Your Buck With Mortgages
Choosing a knowledgeable mortgage lender can make a difference in the quality of home you are able to purchase with your finances. I prefer to recommend a mortgage broker to my clients, because they usually offer 50 or more programs. Regular mortgage companies are usually locked into one source. Take time to research a mortgage lender. And, remember, creative financing can be the way to go if you need a higher priced home with more space.
Its The Same Deal For Both Search Engines And Real Estate
Its all about location, location, location!
Feed me - Satisfy the Search Engines and Your Sites Visitors With Keyword-Rich Content
Search engines love content. Graphics may make your site look great, but a nice picture does not attract a search engine. Or a searcher for that matter. Good, relevant content does.
Is Accumulating a $1,000,000 Net Worth Easy Yes and NO
Is accumulating wealth as easy as following a 3-step plan Yes it is and no it isnt. As with many things in life, accomplishing a goal such as accumulating one million dollars or even $100,000 depends on your desire, your personal choices and your daily actions.
Keeping Abreast Of Your Domain ...Updates and Keeping Up With It All
Another major complaint that most business owners have is all the reading they need to do to keep abreast of what is happening in their business area. Again time management and organization can be a tremendous help.
What is Bridging Finance
Once you understand what the term, “Bridging Finance” means, it’s easy to understand how it got its name.The purpose of a bridging or bridge loan is to provide short term cash for a real estate transaction until permanent financing is secured.Bridge loans are commonly used to “bridge the cash gap” when completing commercial real estate transactions.
Investing: The Art Of Making Your Money Work For You
There is a lot to know about investing. It all depends on what type of investing you are interested in as well. There are many different types of investment options out there. So what is investing, specifically
How Do I Define My Market
Your market is who you want to reach. Your customer. Who is your average customer What is your estimate of total market size What territory do you intend to serve Will you offer a variety of products or services
1,001 Deals and Steals: A Guide To Online Classifieds
Some naysayers way back in the 1990s predicted that online shopping wouldn’t last. Sure, and they said television was a passing fad, too! As we all know, just the opposite has occurred. There’s a television in every household, and more than likely, the homeowner bought their television online—along with his books, music CDs, clothes, and maybe even his home.
Is Accumulating a Net Worth of $1,000,000 Easy Yes and No
After purchasing Anthony Robbins Get The Edge program, I was a bit skeptical that it would provide much value. I can honestly tell you that it has dramatically changed many areas in my life. Many of my new or old goals are finally in clear focus, Ive been taking action on a daily basis and more of my goals are now beginning to become a reality. Anthony Robbins exudes an abundance of energy and shows a sincere enthusiasm to help you get motivated and move towards your own path to success.
Dont Sign That Lease Yet
Youre being transferred to a new city in another state for a position that you start in exactly two weeks. You fly to your new hometown to select an apartment. You have exactly two days to make a decision and sign a lease, so when, after much searching, you find a vacancy in a relatively decent property, youre anxious to sign when the lease is placed in front of you. Resist the urge. As mentioned in previously in our report "Avoiding Tenants Tribulations," wearing rose-colored glasses can easily fool you into believing that your best interests as a tenant will be protected. Your desire to find a home and wind up what can be an exhaustive search process can push you into signing on the dotted line before youve read and understand all of the fine print of your lease.
How to start a home business.
Do you know that it’s possible for a housewife or a ‘one-man-show’ around the world to start a home business for full time income
Buying New Construction...How Do I Begin
The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date.
When Showing Your Home to a Home Buyer
Here below are some of the reasons why buyers may be put off when visiting your home.
What is the Difference Between a Power Of Attorney and a Guardianship Which is Appropriate for Someone With Alzheimer’s
A power of attorney is a legal document in which one person the principal authorizes another the agent to act on his/her behalf. Financial powers of attorney allow your agent to make decisions regarding your property. Healthcare powers of attorney allow your agent to make decisions regarding your health care needs.
How Long Your Mortgage Runs Determines How Much You Pay
The first thing most of us think about when the time comes to take out a mortgage on a new home is the interest rate.
The Logic of Emotion!
Homebuyers are an interesting study. Watching people make their home buying decisions has brought me to the conclusion that every decision that every one of us makes is based in emotion. You heard me, its all about the emotion. Before you deny what I am describing to you, let me begin with me.
How To Improve Your Negotiating Skills
Negotiation will be an important area for every homebased business owner, especially in lease purchasing. Whether youre dealing with suppliers, employees, or prospective clients, youre negotiating. The following tips will help you to negotiate better.
Making Freelance Writing Niche Types Fit
Our Freelance Writing Needs Defined
|home | site map|