Empowerment through Real Estate
All you have to do is watch the local or national news in the evening to hear that the latest about the so-called "real estate bubble" that is apparently just about to burst. People "in the know" believe that because interest rates are rising and housing sales are down that there is absolutely no opportunity in real estate today. Let me tell you right now - there's always opportunity in the real estate market!
Recently, we have generally been moving from a seller's market to a buyer's market. Inventories of available single-family homes have been increasing almost daily. As a matter of fact, in the Orlando area where I live, housing inventories have increased 350 percent from last year's levels. That is the highest in the nation. But the Orlando housing market is still one of the most lucrative in the nation.
Just like trading stocks or the FOREX markets, you must develop a strategy when investing in real estate. An entry and exit plan is just as important when buying houses; it's all about good money management. Plus, the more you know about how you will handle your real estate investment the easier it will be to make important decisions like what your sell or offering price should be or what kind of financing to use.
What has scared people away from investing in real estate recently are the government's numbers on the housing market. A recent Census Department report shows the U.S. housing market cooling, but we already knew that fact. Just keep in mind, like the stock market, there's always an opportunity to either buy or sell in real estate.
Knowing what the market is doing in your region is ultimately important when investing in the housing or commercial real estate market. For instance, there are some areas of the nation that are currently losing momentum for sellers while other areas continue to show weak inventories and stronger sales. If you are a potential buyer, look for areas where inventories are still relatively low. Many parts of Texas, for instance, are still showing low inventory increases plus a great regional employment profile. Prices are starting to increase in portions of Texas but families and investors are still buying homes.
Determine what your local real estate market looks like by reading the local news paper. If you see a lot of "price reduced" ads, then you might find buying opportunity. On the other hand, if you see numerous ads that read "buy now before the next price increase," you might make out as a seller. Check with local Realtors or the Chamber of Commerce and find out what's happening in your area. Perhaps a big company in the region is planning layoffs or maybe a local college is starting to grow. These are all indicators that might point to where your local housing market is going. I also urge you to pick up my new book "How to Buy and Sell Real Estate for Financial Freedom" at a major book store near you. The more you learn, the more successful you will become in all your investment opportunities.
Originally published in the Outspoken e-newsletter.