With the economic state in many countries on the down slide, many people are wondering if they will be able to afford to ever own their own piece of the dream. The dream, being owning their own home.
What is important to note is that many people purchased property at high prices. The public were lead to believe that if the price was high … then that meant quality and stronger selling power.
In reality it meant 1. Risk 2. Debt …. and loads of it.
In 2008, people have been told to shy away from the housing industry because of the ever decreasing housing market. If you are an individual who purchased high and are now seeing the prices fall .. I feel for you. If however you are considering to enter the arena of real estate investing, then there is no better time. The real estate investor needs to be alert and know that markets have constant trends. Sure, we see the housing prices going down, so what should that indicate to the astute Real Estate Investor?
Sirens should be blaring to indicate that now is the time to buy. Private real estate investors have more negotiating power than ever before. Before the housing slide, the Seller would have the bargaining chip over the investor. This has now changed and simply stated, the seller can not afford to lose the interested investor.
It is not unheard of to decrease an offer by more than $20,000. Actually all real Estate Investors should never accept a price as advertised. I don’t care if its been reduced previously … or even if the seller indicates that they will only accept ‘offers over ..’ Remember the key for 2008 – The Real Estate Investor, or the potential buyer has the power.
This economic down period is prime time to buy and hold if you can afford to do such. An important key to real estate investing is that when the market is down … then it will surely go up again.
For land developers there is no change to your profit margins. Putting it simply, yes houses, apartments and residential/ commercial projects will be less for the selling price HOWEVER, please take note that the land will be cheaper. In almost all cases you will end up with the same or near the same profit margin. Just don’t forget to do you home work when purchasing land at the commencement.
I must take my hat off to an expert in the field of Real Estate Investing – Mr. Charles Dudley. He has coined the phrase which will be my guide and which also should be the guide of all real estate investors. “Pigs get fatter, while Hogs get slaughtered” – how true is this in the real estate industry.
Accept and project your profits – then march forwards and reap what you expected to gain. If you do this then you will receive repeated customers.
So, if you are doubting 2008 – don’t. make 2008 and onwards – the year of your real estate investing business!