Owning you own home is a dream come true not to mention a true investment in your money. I don’t care how bad the economy is today it is a buyers market and once you are inside the fluctuation can be good or bad either way you have some means of investment stashed away rather its in your real estate or sitting inside the banks pulling shares from the stock markets on Wall Street. Back in the late 50s and 80s there were signs that showed possibilities that real estate was going to be the ground floor for plenty of investors because the demand for land ownership was skyrocketing at a alarming rate.
This meant land that was cheap in which cost you 2,000 dollars to own would now be worth 200,000 dollars in the 1980s and in some cases $2,000,000 depending on the area. Who knew that land would become such a hot necessity on the market, well it was obvious, whoever owns more land in one spot could retrieve most of the investments, ownership of the hot spots that are trafficked, and so many other aspects that has been overlooked by those who didn’t see it coming. Inflation would soon become a benefit for the population of home and landowners. So, now that most homes cost as much as you would by an airline for in the 30s are there still royalties to be made in such market? The answer is yes!
Ownership is Key
Think you’ve missed out on the huge boom? Well, think again because now homes values are going down due to the pressure on the economy from bad bank loans. The lesser money and chances that is being offered to those who need loans the lower the real estate gets allowing those with some money to put down on a house a chance for redemption. Large suburban areas that has just been built are dropping prices half the suggested value price because of the pressure to sale wherein a house cost $300,000 dollars 3-4 years ago the estimated price is now $150,000 dollars, not bad huh.
Investors finds this devastating to there pockets, you know why? Do to the drop in prices it effects multiple numbers stemming from property value and how much it was worth. Imagine owning land stretching 200 yards filled with at least 100 homes that has just been built for a estimated $20,000,000 for a complicated project. Then panic erupts 2 years later and causes the housing market to fall almost 60%. That would be $12,000,000 worth of losses unrecoverable. Now, instead of banks lending $500,000 loans it drops to $150-200,000 and that is based on restrictions stemming from credit, jobs, etc.
The housing market has a bounce back rate of about 30% however that is my speculated estimated value and example. Now, do you make money? As trust grows back into the stock market the more value is moved back into housing investments meaning the job market has to show signs of sky rocketing. Whenever this happens the chances of gaining value is most certain. Say if you purchased a house at $200,000 with a monthly payment of $1,300 a month that had just had a huge price drop from $400,000 that is half the price it was worth in the beginning right? The price value is probably going to shoot back up and match the previous amount it was before 2 years ago. If you have intentions to sale the estate then all you have paid for the time the property was in your possession is $48,000 which means you’ve made $150,000 if you found a buyer in time.
How do we find these diamonds in the rough?
The cheaper the price you can find in your current city the better the outcome of value that has potential for showing gains. Do not purchase property that has history of crime, and drugs in the area because the property value is not going to be valuable at all. Some cities that have shown probability of decline would be a waste of your precious time however you might discover better quality areas a couple of miles away. Where is the best areas to find these houses today? Suburban areas that shows promise can be included in your personal search for properties.
Instead of riding around to find homes on the market for mortgage use networks to find these homes that are affordable. You need to specify what you are looking for in the query box by inputting the price you are searching for, the place where its located in the area. Applying for a bank loan is still an option although the economy has been shaken banks are putting the money back to work. Start off with a small loan and grow beyond by reinvesting the capital that you make from the home sales. Travel the country! Homeowners who are basic investors are the most diverse group to deal in markets. Become acquainted with them because many have been in the business for dozens of years.
In conclusion, making a six figure income in real estate is definitely possible with owning property it could go either ways. When the market is down do not give up on the market, and when the market is up in housing you should consider placing the house on the market for sale. There is no risky loan unless you do not use your common sense on keeping eyes glued on the analytic measures.
Along with stocks the news brief you on the latest about financial matters around the world. Take the data that is given to you or broadcast throughout the financial network and predict your next move. Google various keywords related to your market and stay informed because extra info on the side and learning the fractured parts of housing can save more than harm your business. Harness the power of diversifying the resources in hand. Visit forum rooms and have conversations with those that are deeply component-figured on different real estate tactical advancements.
Senior realtors that hangs around these featured membership website areas have lots of intelligence and insights. Join groups that are totally focused on this juncture that is categorized on Facebook, and even Twitter, these are wonderful resources. What is your intake on this matter? Comment please….:-)