Picking Up Trends In Real Estate

Posted by: fnunez2 on: September 30 2011 • Categorized in: Tampa Foreclosures

NASDAQ in Times Square, New York City, USA.

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In today’s uncertain economy, there are fewer and fewer places to put your money. The stock market has been experiencing recent declines due to the European debt crisis and a stagnant U.S economy. Hard assets like gold and silver have grown in popularity due to the lackluster performance of the dollar, however, even the price of these asset classes have slid as investors are still trying to figure out the unstable economy. Real Estate prices have taking a beating since the Real Estate bubble collapse, which is why Real Estate could be a great investment- “it’s a great time to buy” mantra comes to mind here. Real Estate prices nationally have fallen 3.1%- pending home sales have also dropped off due to properties not appraising, forcing buyers and sellers to renegotiate contracts or canceling them all together. Great investors don’t make money simply by reading financial statements and the Wall Street Journal. They pick up on trends that they see in the economy that helps them determine what course of action to take when it comes to investing their money. A great article by Doug Casey of Casey Research points out some questions to ask yourself when trying to determine current trends.

is real inflation likely to rise the next few years?
is it likely the U.S dollar will be stronger or weaker the next few years?
is it time to invest in Real Estate again, or will it take the rest of my life to see profits?
will the global economy be on solid footing during the next few years?

Figuring out the answer to these questions can help you decide how to invest in the coming years. Real Estate is an attractive investment because of record low prices- it’s important to stress that making a substantial profit will be difficult due the real possibility that home prices can continue to fall in the years ahead. How you purchase the property is also an important factor. The saying “you make money when you buy, not when you sell,” is something to keep in mind when purchasing Real Estate. If you purchase with cash or with a large enough down payment on well priced property, than it will be easier for you to profit from rental income or from the re-sell of the property. If you use a 15 or 30 year mortgage, than you’re at risk of putting yourself in a dangerous financial situation. These are uncertain times-asking yourself the right questions can help you make the best decisions with your money in any economic environment.