Real Estate Growth: How Long Can 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!.
Motiva Group teaches people how to invest successfully in real estate and are the developers of the "Zero Down in Canada Real Estate Investment Home Study Course." Their web site has many free reports and articles on real estate investing.Real Estate Investing : different areas
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Welcome to my Real Estate investing blog. Today I'd thought I would talk about investing in capital cities as compared to regional and rural areas.
One important factor with Real Investing is capital growth. So it is important to buy well in all of these different locations. Buying in capital cities will always give you steady growth, that is well documented.
But in saying that if you are doing your homework you can pick some great deals in rural and regional
emerging areas that are set to grow rapidly.
You need to be aware of what is going on in that area in regards to infastructure and other key regional developments.
A lot of this information is available at your local council or government office.
So to be a successful Real Estate invester you need to be educated and taking action, that is the key to success.
Knowing what is planned for the future in any area can give you a massive...
Real estate > Real Estate Investing : different areas
Southeast Michigan Real Estate Firm Recognized as Leading Residential Real Estate Producer
(ContentDesk) October 7, 2005 -- CENTURY 21 Town & Country, an award-winning southeast Michigan Real Estate firm, has been recognized as one of the leading residential real estate companies in the industry as well as one of the top-producing CENTURY 21 firms in the United States.
They have been servicing southeast Michigan Real Estate for the past 25 years.CENTURY 21 Town & Country believes they are so highly ranked because of their attention to detail and their quality service when it comes to meeting southeast Michigan Real Estate needs.
Their website is one of the ways they provide their customers with the quality service and experience they expect.
It is designed to allow clients easy access to
Southeast Michigan Real Estate Firm Recognized as Leading Residential Real Estate Producer
Real estate > Southeast Michigan Real Estate Firm Recognized as Leading Residential Real Estate Producer
New St. Louis Real Estate Brokerage is Formed by Real Estate Leader Jim Hurley
(ContentDesk) June 30, 2006 -- A new company has emerged in the St. Louis Real Estate market. On
June 15, 2006, Jim Hurley and findingstlouishomes.com began carving out a niche as the premier website for Expert Realtors in Metro St. Louis Missouri.
The website features the latest technological innovations to allow home buyers and sellers the opportunity to access more information in one place than ever before.
Consumers can easily navigate, search, and find updated information and the most updated home listings among the jungle of outdated, obsolete real estate websites.
Findingstlouishomes.com focuses on the one-stop shop for visitors.
Latest in market trends, daily blog posts, easy MLS search with home details and photos, and smooth navigation all play a role in providing the consumer with the most up to date and relevant information on the web.St. Louis Real Estate with http:/...
Real estate > New St. Louis Real Estate Brokerage is Formed by Real Estate Leader Jim Hurley
Instant Real Estate Newsletter Offers Unique Real Estate Marketing Strategy Free of Charge
Shelby Twp., MI (ContentDesk via ContentDesk Direct) June 27, 2006 -- Realty newsletter publisher InstantRealEstateNewsletter.com is making its real estate marketing publication more attractive than ever to real estate professionals by offering them a 30-day free trial offer. Conceived and developed by real estate veteran Kris Asquith, the aim of the Instant Real Estate Newsletter is to allow real estate professionals an opportunity to remain in regular contact with their current clients. At the same time, it affords real estate professionals a unique means of turning on-the-fence prospects into full-fledged clients. Real estate agents who are interested in trying out the publication on their clients/prospects can sign up for a complimentary 30-day trial at www.InstantRealEstateNewsletter.com....
Instant Real Estate Newsletter Offers Unique Real Estate Marketing Strategy Free of Charge
Real estate > Instant Real Estate Newsletter Offers Unique Real Estate Marketing Strategy Free of Charge
Real Estate Growth: How Long Can It Last? Real estate mattresses
GPS Vehicle Surveillance Equipment is Here to Help You!
Surveillance is not only a game of PI (private investigators) or the police. You can also have a surveillance gear (maybe not as sophisticated as wearable spy equipment or mini audio recorder measuring the size of your fingernail?) to keep tracking almost anyone you want. What I'm talking about here is GPS tracking system.
GPS tracking devices allow you to track your car or any other moving object, like boat, bike or even a plane. GPS trackers are even installed in some high-tech...
Real estate > GPS Vehicle Surveillance Equipment is Here to Help You!