We all know that buying real estate but e ecially in hot markets like Miami, is one of the biggest p
We all know that buying real estate but e ecially in hot markets like Miami, is one of the biggest personal investments you can make. When you are buying in a competitive market, like the Miami real estate market, it's important not to allow yourself to be pushed or cajoled into making a fast decision. The "fear of lo " factor is used very effectively by many real estate agents and is a popular ploy in the hotter markets.
The first thing you need to do is to understand that the market is cyclical. That is, it won't keep going in any one direction permanently. OK, so over a long term of 5, 10 or more years, there will be a definite trend but don't expect a year over year equity increase.
This fact free you from another popular real estate agent strategy... the "buy now because the price is going up" plan. Honest agents will show you market profiles that justify the asking price of any property. These profiles should include not only the asking the selling price also. There are agents that make statement like; "the market will go up 10% this year," or "that you will make your investment up in 2-3 years." Now unle they have a crystal ball or can see into the future, these are fluff statements that should raise a red flag in you mind.
Never buy real estate and base the purchase on something ha ening in the future. If it's a "good deal" it's a good deal NOW not in 10 years. A lot can ha en during this waiting period.
This doe 't mean that the market doe 't get red hot or that if you don't jump onto something immediately, it ends up sold. These things do ha en. But it's important to remember that there are other factors at work in any real estate market but e ecially evident in a robust or seller market.
These include the GREED FACTOR. People look back several years and then use that information to decide that the market will continue to go up in the future. "Previous retur are not indicative of future results" is a popular statement on many investments but some people don't seem to believe it when it comes to real estate.
Next up is the GREATER FOOL THEORY. This is one that even bankers use to justify lending to some people who can barely qualify. The theory is that once the property is sold and the loan closed, the increase in a reciation will give the bank - or owner better protection. The idea is that the owner can sell it for more money to the next person willing to pay to get into the market. The problem is that once again, is a umes a continued positive a reciation in property values.
People seem to forget that it wa 't that many years ago that property in much of Florida was sold off very inexpe ively. There was little to no a reciation in many real estate markets throughout the country for years. A normal market will return sooner or later.
By buying into the hurry up and purchase strategy, you run the risk of buying at the top of any real estate market. This is e ecially true however when talking about a hot market like Miami Real Estate.
Purchase wisely as a good investment continues to be a good investment no matter what the market.
The article is refered from http://www.bbcok.com, http://www.worldloanpro.com, please go to read more.
The first thing you need to do is to understand that the market is cyclical. That is, it won't keep going in any one direction permanently. OK, so over a long term of 5, 10 or more years, there will be a definite trend but don't expect a year over year equity increase.
This fact free you from another popular real estate agent strategy... the "buy now because the price is going up" plan. Honest agents will show you market profiles that justify the asking price of any property. These profiles should include not only the asking the selling price also. There are agents that make statement like; "the market will go up 10% this year," or "that you will make your investment up in 2-3 years." Now unle they have a crystal ball or can see into the future, these are fluff statements that should raise a red flag in you mind.
Never buy real estate and base the purchase on something ha ening in the future. If it's a "good deal" it's a good deal NOW not in 10 years. A lot can ha en during this waiting period.
This doe 't mean that the market doe 't get red hot or that if you don't jump onto something immediately, it ends up sold. These things do ha en. But it's important to remember that there are other factors at work in any real estate market but e ecially evident in a robust or seller market.
These include the GREED FACTOR. People look back several years and then use that information to decide that the market will continue to go up in the future. "Previous retur are not indicative of future results" is a popular statement on many investments but some people don't seem to believe it when it comes to real estate.
Next up is the GREATER FOOL THEORY. This is one that even bankers use to justify lending to some people who can barely qualify. The theory is that once the property is sold and the loan closed, the increase in a reciation will give the bank - or owner better protection. The idea is that the owner can sell it for more money to the next person willing to pay to get into the market. The problem is that once again, is a umes a continued positive a reciation in property values.
People seem to forget that it wa 't that many years ago that property in much of Florida was sold off very inexpe ively. There was little to no a reciation in many real estate markets throughout the country for years. A normal market will return sooner or later.
By buying into the hurry up and purchase strategy, you run the risk of buying at the top of any real estate market. This is e ecially true however when talking about a hot market like Miami Real Estate.
Purchase wisely as a good investment continues to be a good investment no matter what the market.
The article is refered from http://www.bbcok.com, http://www.worldloanpro.com, please go to read more.
