Belize Real Estate Links 
| Belize Real Estate Links | |
| |
|
Real Estate Information |
|
|
|
5 Secrets for Surviving a Real Estate Market Downturn
History repeatedly serves to show us that the real estate market is cyclical. It has boom times and stagnant times, occasionally it suffers a crash but real estate never becomes worthless, therefore if the experts are right and we're about to suffer a slow to stagnant period in the real estate market, all is not lost! There are 5 fundamental secrets that real estate investors like to keep close to their chest and they are the secrets that enable them to survive and even profit during a bear market. This article blows the lid off the secret world of the professional real estate investor! 1) Aligning For Profit in a Bear Market When professional property investors believe the market is entering a downward phase i.e., changing from Bull to Bear - they will change their investment strategies accordingly. One method that tough investors apply is to buy up property in the best areas that they can afford once a market is slumping already. Professional real estate investors know that the best areas for property always boom again very early on in the next property cycle. By working in this way they can then leverage their investment by selling their property early on in the boom cycle and buying elsewhere and always remaining one step ahead of less professional investors or average home owners. Up and coming areas will eventually peak as well of course as they are swept along on the tide of the boom, but they will not peak first and investors in these areas will have to wait longer to see their profits. Professional investors will likely enter these areas just before they peak and sell up just before the heat goes out of the market enabling them to again buy up what they can afford in the best areas thus positioning themselves ready for the next upward trend. And so it continues! 2) Slow Down Your Speculating You may already have decided that the time is no longer right to be over extending yourself and you may have cut back on your property purchases, but remember that making any home improvement or taking on any renovation projects during a downward period of the property market is also considered to be speculating. Don't just assume that capital appreciation from your property will justify home related expenditure right now?in a bear market it won't. 3) Never Forget The Supply and Demand Theory Property prices don't go up infinitely, if you examine the ebb and flow of the market in the US over the past decades for example, you will see that stand alone investment in real estate would've returned you gains of just over 1 percentage point above inflation! There comes a point in every market cycle when the market runs out of investors willing to buy up at the top prices and there comes a point when first time buyers are frozen out of the market. As demand dries up, over supply brings down prices and this stops the entire market in its tracks. If you remember this fundamental fact and examine the movement of the market closely and carefully you will be able to see when supply is about to outstrip demand, you will be able to watch first time buyers reigniting the market, you will understand when the time is right to sell and when the time is right to buy. 4) Balance Real Estate Exposure You may assume that your only exposure to the property market is what you physically hold in the way of real estate assets - but don't forget all your paper investments as well. Do you have money invested in REITs, do you have funds that invest in commercial property as part of the underlying portfolio, what about your retirement fund, which market sectors are the find managers investing in on your behalf right now? Don't assume that fund managers will make the right decisions at the right time on your behalf, you might be able to see the heat going out of the market quicker than they can react. If this happens you have to be prepared to rebalance your entire portfolio and move your exposure away from real estate if you believe the market is about to dip. 5) Protect Your Equity There is nothing more valuable than the equity you own in your own home. Do not put that at risk. It is very tempting in a boom market to re-mortgage yourself back up to the new greater value of your home, but in so doing you expose yourself, your family, your home and your future to unnecessary levels of risk. Secure the roof over your own head first and foremost, and only then proceed into the greater real estate market with care! Do not be tempted to secure any extra loans or mortgages on your family home. Professional and wise real estate investors worth their salt will always secure their own position first and foremost. Rhiannon Williamson writes for real estate investors, international investors and expatriates via her site http://www.shelteroffshore.com/ If you want to discover the latest investment property hotspots, learn about investing offshore or become an expatriate and living and working abroad, visit Shelter Offshore for the latest articles, guides and resources.
MORE RESOURCES:
Debt Levels of Commercial Real Estate Borrowers Set to Increase 40% in 2012 - World Property Channel
Google News |
|
|
|
RELATED ARTICLES
Timing Clauses Stop Sellers From Inciting Bidding War It is no secret that the current real estate market is hot, hot, hot. Sellers can receive multiple bids for their property on the same day. How to Make Money from the California Real Estate Gold Rush What do the Californians know that we don't?What is so special about California? Why is the average price of a house there five times higher than nationwide? Why on a salary of $100,000 per year, you can hardly afford to rent a decent apartment in the large cities there?It is true, Californians have a nice looking Pacific coastline. They also have a pleasant climate. Estate Agents on the Costa Blanca Spain Properties for sale or to rent on the Costa BlancaAs a general rule of thumb, newly built properties on the Costa Blanca are generally cheaper than existing or re-sale properties - cheaper still if you buy 'off plan' (before the house has been started). Property prices have rocketed here over the last five - ten years and many fortunate people have found that their properties have grown in value enormously even before they had moved in! Even though the market is now leveling out, a property in Spain is still an extremely good investment. What is a Predatory Lender? Several months ago, the 3,000-member California Association of Mortgage Brokers (CAMB) created the first real definition to describe the abusive lending practices of predatory lenders. According to the CAMB, predatory lending was described as "placing consumers in loan products with significantly worse terms and/or higher costs than loans offered to similarly qualified consumers in the region for the primary purpose of enriching the originator and with little or no regard for the costs to the consumer. Buying Real Estate Thats Not For Sale Buying real estate can start with a look in the newspaper, a visit to a broker, or a search online. These are all good ways to find your next investment property. Real Estate Local FAQs. There are many frequently asked questions and any local real estate area. In our area here at the local Delaware Beaches, the most frequently asked questions are how to get a good deal and if there are any fixer-uppers available. Are You Really A Twenty First Century Investor Today's residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed. Buy to Let Property Investment In recent years buy to let has been a popular way of investing in residential property. Stock markets are out of favour with many investors who have seen the values of their portfolios, endowment policies and pension funds shrink, whereas property has generally continued to rise in value. Budgeting Your Log Home - Creating a Checklist If you've read my first article, BUDGETING YOUR LOG HOME: Where do you start?, you've got a very basic overview of the process. However, there are still a number of questions I'd like to address. The Cat in the Attic Strange and unexpected things happen during home inspections. Seldom are they tragic. How Do You Profit From O.P.P.? In a previous article we introduced you to the concept of O.P. Real Estate Investment Requires A Team I had a hard time at first with real estate investment. One of the reasons was that I tended to be a "lone wolf," trying to do too much myself. Property Investing - Am I Buying for Profit or Prestige? All of us have emotional preconceptions and assumptions. They are reinforced and fine tuned by our experiences of life, be they traumatic, disciplined or consistent. Fantasy Gap [fast money in real estate] I was in the rental business for seven-years, made 1.3 million dollars the first five years, got ill, and had to get out of it slowly, but had the money to do it. How Come No One Told Us About This When We Were Buying a Home? Development, it's bound to happen.Simply because there is a large open field, or the property you're looking at borders woods, doesn't mean it will or can stay that way in the future. Practical Advice for Finding Irish Castles for Sale Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years. Location, Location, Location Location, location, location - known as the 3 most important factors when buying a property, and it is easy to see why. The location of your property dictates how much yield you get, and how much capital growth, which ultimately decides how well you do. Real Estate for Beginners: Residential Property Taxes Whenever you own a piece of land, you will be taxed for it. Whether it is commercial property or residential property, there is still a tax to pay, whether it is for a village, town, city, county, or state. Real Estate Investing - "The Neighborhood Factor" Real estate investing can be a dream career when the process of buying and selling is mastered. The biggest challenge in real estate investing is not the money to get started or the availability of the product. Young Couple Buys Ranch with Government Money Kirk and Tina Sczepanik had a dream. They wanted a ranch of their own.
|
| home | site map | Colorado Log Homes | Homes for Sale in Denver Metro |
| © 2006 |
