Why a Buyers Market Is a Great Time to Invest in Real Estate?

Why is a buyer’s market a great time to invest in real estate? It is because the oversupply of homes almost never lasts for a long period. Eventually demand catches up to supply, and often surpasses it, leading to rapidly rising home prices and great returns to investors who were willing to buy at the bottom. If you’re willing to buy when the market is at the top, you certainly should be willing to buy when it is at the bottom.

Unlike other investments, real estate is a tangible asset that you can control. It isn’t like a stock or a bond that can literally go to a value of $0 overnight. Companies disappear and go bankrupt all the time – and take the value of their stocks and bonds with them. Perhaps you were one of the people in the recent financial crisis that owned stock in one of the dozens of companies that declined in value by 95% or more.

Literally dozens of companies experienced that in 2008 and 2009 – Lehman Brothers, Bear Sterns, General Motors, Fannie Mae, Freddie Mac, AIG – and countless other high profile companies. Real estate is a tangible investment that is far less likely to just disintegrate in value over the course of a few short days or weeks or even a couple of months.

Certainly real estate can decline in value but it’s extremely rare for the real estate to decline to $0. More importantly, the decline is often slow and steady, giving you plenty of time to sell the property if you need to.

Of course you cannot control the market but you can elect to hold property long term, lease it for monthly income, or sell it whenever you choose. With this in mind, it is important for you as a real estate investor to stay informed on regional and national events such as job growth, population growth, and so on. This will help you understand general trends and forecasts with regard to your investments. For more information please visit these sites:- https://earnadmob.com/ https://fastfunnels.com/ https://www.utopiaibiza.com/ https://www.adsm.com.sg/ https://www.okconstructioncorp.com/ https://baldandblonde.live/ https://apkdlx.com/

Start following unemployment figures for specific states and regions. Watch for news announcements of big companies moving into or out of states where you own property. Research local, state and federal governments economic data as a means of forecasting future demand for infrastructure and other public services. These will help you to become an informed investor that will allow you to make better decisions about your future property purchases.

For all the reasons we discussed above, we believe investing in foreclosed properties is a great way to put you in the driver’s seat of a profitable opportunity. If you do your homework you can purchase property for less than the property is really worth at virtually any time of year, and almost anywhere in the country. This is partly because there are millions of real estate transactions that happen every year, and many of the sellers are financially unsophisticated people who don’t take the time to figure out what an asset is really worth.

This allows an investor to purchase property with a very small capital outlay and protect you from a downturn in your real estate markets. For example, the past couple of years have been very tough on the Las Vegas market.

In 2008 housing prices plummeted, and there are now many more distressed transactions there than any time in recent memory. If you had purchased a home five years ago for $250,000 hoping to be able to take advantage of the growth, and you were trying to sell now, you would be competing against tens of thousands of others looking to do the same thing. Thus, the only way to really move your property would be to sell for much less than the home’s appraised value, potentially taking a loss.

But what if you had bought a home at the bottom of the cycle, rather than the top? And what if instead of buying a mid-priced to high-priced home you had bought an inexpensive foreclosure to fix up? You’d still be making money instead of losing it in this market. So does it help to have a great market? Sure it does. But if you buy right, you can make money even in a down market.

The saying has always been and always will be, you make your money on a real estate deal when you purchase, not when you sell. If you buy real estate right, you will always win.

 

naz

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