Five Steps to Prepare You for the Next Real Estate Boom
Everything goes in cycles. Predictably, the sun rises in the east and sets in the west. Fashion trends go from long hair and short skirts to short hair and long skirts and then back to long hair and short skirts. The stock market hits a high and then it hits a low. The more you think about it, just about every aspect of our lives is cyclical. This is ever so true when it comes to the real estate market.
We have been in a very poor real estate market for the last two years. Prior to that, there was rampant growth and ever-rising prices in the Chicago Real Estate market. Today, we appear to be at an inflection point, where real property will once again regain its proper status as a foundation for the American economy.
The prudent investor realizes that market conditions have driven the price of property down to historically low levels. There are many opportunities to acquire property at discounted prices. It is important to realize that buying property today can be a wonderful investment in the upcoming real estate boom.
There are those pessimists who feel we will never get out of the housing malaise and will be lucky to see property values rise by 1% or 2% over the next 5 or 10 years. Those are the same naysayers that said gold was too expensive at $800.00 or Ford Motor Company (selling at roughly $2.00/share in March 2009) was a worthless stock (today it sells for about $16.00/share, an 800% rise in just over 1 year). The fact remains that property was driven up too high by wild speculation, but then it was pushed way below its true value when the market collapsed.
Following are 5 surefire ways to profit from the upcoming real estate boom.
1. Buy at Discounted Prices
Whether it is a foreclosure, a short sale or just a regular sale, houses can be had at a fraction of what they were selling for just 2 years ago. Many homeowners are either struggling to make their monthly mortgage payments or simply are unable to make them at all. They want to get out of a difficult financial situation and are usually desperate to find a buyer. While it may not be the nicest thing to take advantage of someone else’s misfortune, in the world of business, all is fair.
2. Buy in Areas Hardest Hit By the Housing Collapse
There are certain areas of the country that got hit harder than other areas when the market collapsed. A couple of examples are the Miami, Florida market and the Las Vegas, Nevada market. The best prices on desirable properties can be had in these markets
3. Supply and Demand
Look for areas where there is a large supply of vacant housing and many houses for sale. The more desperate an area, the better deal you will be able to make to acquire property. Some inner cities where jobs and houses have both seen better days are real bargains. Detroit, is an example of an area where a little revitalization can mean a big upturn in housing.
4. Accumulate Cash
To take advantage of all the opportunities, the stronger your financial situation, the more apt you will be able to purchase low priced properties. Having a strong credit report is also very important to qualify for a mortgage or several mortgages.
5. Interest Rates
The real estate boom will be energized by the low mortgage rates available at the current time. There is little chance of them moving up in the near future. The lower rates mean owning a home is cheaper and easier than ever. Take advantage of the current market conditions.
Nevada residents aren’t just going broke in the casinos, they’re going broke in the larger game of life. While the online poker industry has taken a major nosedive and negatively affected the lives of professional and semi-professional online poker players, the economy has had similar effects on Nevada residents. Real estate values have dropped in the state and foreclosures are rampant.