Real Estate Growth: How Long Will It Last?

There has been speculation in the media recently about the fact that real estate will begin to fail and implode as it can only handle so much growth. In my humble opinion these theories don't hold a lot of merit and here is why. First, understand that there are three basic things that undercut the validity of saying that there is a real estate bubble that people are operating in.

1. There is no "international" or "national" real estate market.

2. The real estate market doesn't explode or crash.

3. The market has limited impact on the seasoned investor.

The Real Estate "Market" is an overall view of micro markets nation wide.

When people talk about real estate economics they are usually referring to national or international statistics which in truth are made up of thousands on micro or local real estate markets. So even though you might find a North America wide trend there are still many, many markets which will be completely at odds with the overall numbers.

Real Estate Markets do not "Crash."

We all remember October 19, 1987, known as "Black Monday." The stock market lost 22% of its value in one day - what investors call a "crash." History points to times which real estate values have taken 22% hits in certain cities and in pockets within cities. However, no real estate market dropped 22% in one day, one week or even one month. In fact, the real estate "crash" of the late 1980's took several years to bottom out in most markets.

Keep in mind too the overall performance of the real estate market you are investing in. Those of you who have been active in the Edmonton market the last few years might think that the market is in a slump or downslide, when in reality the numbers they are recording are far above what the average of the last decade show.

The market has limited impact on the seasoned investor.

No matter if you are holding properties long term or doing a quick flip, the local market changes will not affect you in a major way if you are careful. For example if you are doing long term hold revenue properties there is little to no chance that the market will not increase over the term of your holding period. If you are on the other hand flipping properties then you will buy at a higher price in a strong market and will move the property quickly, or get a better price which will help you in higher holding costs in a softer market.

Now, just as a side note for those of you looking at holding properties for future value considerations. If you are buying negative cash flow properties with the expectation of equity increase over 2-3 years then, in the words of a recent article that I read, SHAME ON YOU! If you are using investor's capital to close these deals and the value doesn't increase what are you going to do? What if the value decreases in that time? You are putting investor's capital at risk and as far as I am concerned are acting as an irresponsible speculator, not a seasoned real estate investor!

Steele Tolman teaches people how to successfully invest in real estate through the "Zero Down In Canada Real Estate Investing Home Study Course," web mentoring and seminars. http://www.motivagroup.com

Dont Forget to Ask About Restrictive Covenants

Homebuyers, especially first-timers, may not think of asking about restrictive covenants. But these clauses dictate... Read More

Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For Now For $395, you can stop... Read More

Part 1: FAQ?s From Media Interviews With Real Estate Author

Do you feel there is going to be a real estate bubble?Nash: No. Are some... Read More

Home Equity or Debt Trap?

Are you using the equity from your home to purchase everyday things? This is a... Read More

5 Things to Look for in a Property Appraiser

Homeowners who are seeking a property appraiser often ask "How should I choose which real... Read More

7 Different Ways Anyone Can Become a Real Estate Investor

Being a real estate investor is not really that hard, Sometimes you do not need... Read More

Practical Advice for Finding Irish Castles for Sale

Have you ever wondered what it would be like to live in a castle?Have you... Read More

Flipping Fixers: Using Transformation Psychology for Top Dollar

Satisfying and lucrative real estate investment depends upon your correct assessment of profit potential, of... Read More

Real Estate Investing with No Cash and No Credit

Lots of folks think it can't be done.How in the world can you buy a... Read More

Choosing a Realtor

Purchasing a property, either as an investor or as a prospective homeowner can be one... Read More

How to Create Cash Flow Out of Thin Air!

Want to see a trick every real estate investor will love?From the Desk of Thomas... Read More

How Long Your Mortgage Runs Determines How Much You Pay

The first thing most of us think about when the time comes to take out... Read More

Hey Landlord! Is Your Lease Legal?

The longer you are a landlord the more you strive to create the perfect lease/rental... Read More

Get Rich With Mobile Homes

Does the myth that mobile homes depreciate in value keep you from investing in them?... Read More

Real Estate Appraisal - Do It Yourself

For single family homes, there are two basic methods used in real estate appraisal. They... Read More

How to Price Your Property?

A house properly priced is half sold. But there are plenty of ways to price... Read More

Buying A Home ? Zoning and Architectural Review Board Restrictions

When you buy a home, you need to be aware of the various things that... Read More

Buying a Vacation Home

You'd like to buy a vacation home, but you're not sure where to begin. Perhaps... Read More

Investment Property Part I: How Not to Become a Slumlord

After riding the ups and downs of the stock market roller coaster for a while,... Read More

How To Find An Experienced Monticello Illinois Realtor

Finding a professional Monticello Realtor in Illinois is the best way to find the perfect... Read More

Maui Realtors: What You Need To Know

Maui is a great place for families of any size. However, before you plan a... Read More

The Cat in the Attic

Strange and unexpected things happen during home inspections. Seldom are they tragic. Often they are... Read More

Want To Be Profitable In This Real Estate Bubble? I?ll Show You How In Just Three Easy Steps

STEP#1. First you have to recognize that in order to make money in almost any... Read More

Alicante to Mar Menor - You can Still Find Cheap Property in Spain

The Murcia region in Spain benefits from some of the most beautiful coastlines of Europe.... Read More

Property Investing ? Port Melbourne Life on the Edge

Property investing prices pick up following a cooler winter last year. Susannah Petty Reports.Winter has... Read More

Homes in Chapel Hill

Chapel Hill is located right in the middle of North Carolina, halfway between the Blue... Read More

A Beginners Guide to Flipping Houses

If you're dreaming of making money in real estate, it's time to stop dreaming and... Read More

Selling by Owner = Saving by Owner?

According to the National Association of Realtors, For Sale By Owner (FSBO) home sellers comprised... Read More

Dont Get Stuck Having To Deal With The Sellers Household Hazardous Wastes - After You Move In!

I have a confession to make!I was just outside with Frankie (my dog) and noticed... Read More

Real Estate: Buyers Agent, Sellers Agent & Dual Agent (defined and explained)

There is a relatively new and not always well understood practice in Real Estate sales;... Read More

Property Types A, B, C And D

One of the biggest problems individuals just starting out have is the type of property... Read More

Why Are Mortgage Notes Discounted Anyway?

When real estate note brokers purchase partially paid notes, they pay the note holder a... Read More

The Irish Property Market - Expensive But Worth It?

Lying on the edge of Europe facing out to the Atlantic Ocean sits Ireland, one... Read More

Florida Real Estate Exploding For 15+ More Years?

YEEHAW!!!!!! The south will rise again!! Can't you just imagine the Dukes of Hazard boys... Read More

Checklist for Buying a Home

I had a client who called saying that his bath tub just fallen through the... Read More

Planning for Real Estate with Estate Planning

One of the most important considerations you will need to make in regards to your... Read More

FSBO Novel Preface

PrefaceWe are For Sale By Owners, "FSBOs." We spend our time trying to sell ourselves... Read More

Investment Property Part 2 of 2: What You Need to Know Before You Buy

Welcome to the second portion of a two-part series on investment property. In the first... Read More

Condo Hotel Trends - A Look at the Big Picture in Vacation Home Ownership

Condo hotels are one of the hottest products in today's real estate market. New properties... Read More

Back To The Future - Big Changes Are Coming, Get Ready Now

The comments below are quoted from a recent speech by Ben Bernanke, a member of... Read More

Home Selling: Making It Easy On Yourself!

It's a dream for many to buy and take ownership of a home. It's something... Read More

Secrets of Making Money from Real Estate - Part 4

Analyzing and finding the right property deals:Firstly read my other article on how to Buy... Read More

For Sale By Owner: The Inside Scoop On Selling Your Own Home

If you're thinking about selling your home perhaps the 'for sale by owner' signs posted... Read More

Property Investing Secrets 4

Property Investing Secrets:How to Sell to 100% of the Market Place Using Lease OptionsWhen property... Read More

Talk to a Lender Before You Sell Your Home

If you're looking to sell your home quickly, and for top dollar, the best thing... Read More

Do You Speak Real Estate?

Anyone interested in real estate should be able to talk the talk. Here is a... Read More

How Do I Fix Up a Home to Sell?

The first thing you need to do is stop thinking of your home as "home"... Read More

Dealing With Dual Real Estate Agents

Historically, real estate agents have represented the seller of a property. The seller, after all,... Read More

Real Estate Investing - Protect Your Privacy

An irate tenant or disgruntled home-buyer, with the help of a willing attorney, can readily... Read More

Young Couple Buys Ranch with Government Money

Kirk and Tina Sczepanik had a dream. They wanted a ranch of their own. But... Read More