by: Tim Phelan
Of course, this is the big question in real estate now. . . Will the so-called real estate bubble burst like the dot-com bubble did a few years back? There are some good arguments on both sides of the issue. Whatever happens in the next few years, it will affect millions of Americans, and therefore also millions of people worldwide. If the bubble does ?burst? as some say, it is all but certain we could, or more like would, go into a recession. A deep one. Right now the real estate business has been a prime reason that the economy has been decent the last few years. It has been one of the few consistently bright areas of our economy.
First of all, to compare the real estate industry with the dot-com industry is unreasonable. It?s comparing apples with oranges. The real estate industry has been and will always be a central part of the US economy. It will never disappear and there will always be a need and demand for it. Investing in real estate makes sense for the long term. On the other hand, the dot-com bubble was not based on anything more than speculation. Many businesses were trading on the stock market for unreal amounts of money and never made a dime in profit and ultimately never would.
So for me, some of this thinking is this: ?Well, the stock market had the dot-com boom and then it collapsed, so now we have this real estate boom so surely it will collapse also.? I just don?t go along with that comparison. Again, these are totally different industries and markets. Heck, if we can pay $20,000, $50,000 and even up to and over $100,000 on automobiles, then spending $300,000, $1,000,000 and more on homes seems very reasonable. Property will always be there as long as the mortgage is paid and the taxes are paid, too. That brings us to a good argument for believing the real estate market will slow down and possibly have a downturn.
The reason there is a good argument for the belief that the real estate industry will have a major downturn is because some people, perhaps a good amount of people, won?t be able to keep up with their mortgage payments if they start losing their jobs and the economy slows down. The rise in gas prices could have a major effect on the economy and if these homeowners start defaulting on their mortgages then this could turn the industry around.
Many home owners and speculative real estate investors are using what some would call risky home mortgages, the interest-only and no-income verification loans. These allow more people to buy more homes and are part of the reason the real estate industry has enjoyed such a boom the last several years. Creative financing started decades ago and has kept increasing more and more different ways for the home buyer and speculator to get what they want. This is a good thing overall in my opinion. However I can see the dangers of this trend also. I don?t feel a burst is inevitable but it is certainly very possible. Perhaps more likely, unless a major event such as another war or terrorist attack, is a slow down and evening off of the growth of the real estate industry.
There are those on the side of the inevitable downturn philosophy, who are preparing for the worst. Just as some people can make money on the stock market even when it goes down, there are those who are preparing for a possible ? inevitable in their minds ? downturn in the real estate market.
Here is one such way to capitalize on a real estate bubble burst or at least a downturn: pre- foreclosure deals. There are some investment clubs that are based solely on waiting for this to happen and then buying into this market. People will be foreclosing in record numbers if this downturn comes. Perhaps it is more accurate to say when, because as history shows there are always downturns in the market; and with all the creative financing, no interest loans and no income verification loans the probability of a downturn is likely. However, this is different than a ?burst.?
Here is a book that specializes in taking advantage of this situation. People will make millions in this market trend just, as I said, like some make millions when the stock market goes down.
http://www.fishpond.co.nz/product_info.php?ref=201&products_id=843514&affiliate_banner_id=1
So here is what can happen:
1. The market will keep going the way it has the last few years, which is up, up and up. Quickly is some areas. Not likely.
2. The market will slow down and level off soon. Very possible.
3. The market will have a slight downturn and many will lose their homes and many will benefit from this. Very possible.
4. The market will ?burst? the ?bubble? and there will be a major catastrophe in the industry. Possible, but not as likely as 2 and 3.
Whatever happens, there will be some who are ready for it.
About The Author
Tim Phelan makes his living now online and has been involved in real estate as an investment for several years. His blog: http://timphelansblog.blogspot.com/ More real estate: http://www.cutting-edge-real-estate.com
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The Basics Of Estate Planning
The Basics Of Estate Planning
by: Robert Thatcher
Estate Planning may be a word that is encountered by many citizens especially the elderly. What is Estate Planning? What benefits does it provide to people?
Estate Planning is a method of arranging and considering alternatives that will satisfy specific wishes and goals to prepare for things that may happen to a person and the people he finds special to him.
Estate Planning includes organizing properties and not just putting them in a simple Will. It also lessens the taxes and fees that may possibly be charged to these properties. Estate Planning also includes contingency preparation to ensure that ones wishes regarding health care and medications will be followed.
An estate plan may be described as good if it financially coordinates with the future of the home, business, investments, insurance and other benefits if ever the person becomes sick or will pass away. A good estate plan...
The Basics Of Estate Planning
Real estate > The Basics Of Estate Planning
Real Estate Investing Basics
Real Estate Investing Basics
by: Richard Rigor
Real estate investments may not be everyone?s cup of tea, but some people who have already tried investing in real estate know that it can be profitable. Real estate investment experts say there are several keys to making significant profits in real estate investment deals. And when the deals are profitable, you will certainly be well on your way to success.
For real estate investment neophytes, don?t be afraid of the challenges and pitfalls you may encounter along the way. There is definitely a lot to learn, but in the long run after you have gained some experience, you?ll hopefully become a master at closing profitable real estate deals.
There are 5 core skills that are necessary for building a real estate investment business. These will be the key factors in creating a profitable real estate investment portfolio.
These are the 5 core skills of real estate investment:
1) You...
Real Estate Investing Basics
Real estate > Real Estate Investing Basics
A Guide to Investing in Real Estate
A Guide to Investing in Real Estate
by: John Mussi
With all of the investment opportunities available these days, it can sometimes be difficult to decide which one is right for you and your money. If you find yourself trying to make a decision about where your money should be invested, you might want to take a few moments to consider investing in real estate. While real estate investment isn't right for everyone, there is a rather significant potential to make money if you handle your real estate investments correctly.
To help you to decide whether or not real estate investment is right for you, here is some additional information on investing in real estate for both resale purposes and rental purposes, as well as some of the advantages and disadvantages of this type of investment.
Investing for Resale
One common method of investing in real estate is investing for the purposes of resale. This method uses real estate in much the...
A Guide to Investing in Real Estate
Real estate > A Guide to Investing in Real Estate
Real Estate Website Scams
Real Estate Website Scams
by: Bob Schwartz
Many still say the Internet is like the Wild West. When it comes to the proliferation of scams, this is certainly true! As webmaster for over two dozen legal, real estate, and other business oriented websites, we receive a lot of email and phone solicitations. Often our clients ask our opinion on an Internet service or software product. We have researched and found the majority of offers directed toward real estate firms are what I call the half-truth variety.
It is interesting that these offers directed at small to mid-size firms are like live Internet viruses, they seem to mutate over time. The core remains, but, the exterior packaging (a.k.a. sales pitch) appears totally different.
One of the most enduring of such Internet scams is the offer to list your real estate site in an Internet real estate directory at what appears to be a huge savings over a legitimate real estate directory. The...
Real Estate Website Scams
Real estate > Real Estate Website Scams
Real Estate Investing - - The Key To Successful Closings
Real Estate Investing - - The Key To Successful Closings
by: Lou Castillo
If everyone always did everything they said they?d do, we?d all be a lot richer. Unfortunately, tasks are overlooked, and the ball is often dropped. If you want to have successful closings, you must have strong ?follow-up? skills to catch problems early in the process. Follow-up on everyone and everything.
We can?t begin to tell you the number of closings that almost fell apart, or would have fallen apart had we not kept a watchful eye on the entire process to make sure that everything was completed when it needed to be. Here?s a typical scenario: you?re wholesaling a house and you have just 30 days to get it closed before the contract with the Seller expires. You find a buyer who can get a loan and close before the expiration. Then a few days before closing you find out that the loan isn?t ready and closing must be delayed two weeks, but the Seller already has another...
Real Estate Investing - - The Key To Successful Closings
Real estate > Real Estate Investing - - The Key To Successful Closings
Are You WASTING Valuable Web Real Estate?
Are You WASTING Valuable Web Real Estate?
by: Jason Tarasi
I sat at the lunch table, turning every shade of red the mind could conjure up. I had to do something, and do it fast.
My aunt was chaperoning my eighth grade class on a field trip to the local amusement park. Then she did it...
As we finished eating our lunch, my aunt wrapped up a half eaten hamburger in a napkin, and promptly stashed it in her purse.
As everyone at the table looked at me and started to laugh, I instinctively kicked out my friend's chair. As he fell to the ground, milk shot out of his nose, inciting a roar of laughter. I had saved my aunt from any further ridicule amongst my peers, for this day at least.
I loved my aunt, but she refused to waste anything, and this sometimes caused me a great deal of embarrassment.
Once I started marketing online, I realized my aunt was on to something. In order to succeed as an online marketer, you can't afford...
Are You WASTING Valuable Web Real Estate?
Real estate > Are You WASTING Valuable Web Real Estate?
Real estate
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