Investing in Real Estate Cycles
Author: Michael Joseph Wilsonbr
Source: ezinearticles.combr
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The Real Estate Cycle is Your First Key to Successful Investing
The real estate cycle is the most influential key to your real estate investing. If you do not understand how the cycle works, your real estate investing will be more difficult. When you understand the cycle and identify where your market lies, then investing becomes easier because you are going with the trend instead of fighting it. Lets look at the cycle:
For now, we are only going to focus on the outer edge of the cycle. The primary factors that drive the real estate cycle are based on supply and demand. The supply is based on the amount of homes that are available for sale (new and existing homes) as well as the homes for rent. While the demand is based on the number of buyers/renters that there are for those properties.
In essence, economic factors drive the market. When you start to get to the top portion of the cycle Sell High, it is because the supply begins to out pace the demands. Too many people have purchased existing properties, too many people are building new homes, and too many people have rentals that they have purchased. As a result, the cycle begins to change downward.
The masses hear about how prices have increased during the previous stages of increasing rents/prices and begin to build new homes. This stage of increasing construction is usually when many speculative investors build a new home to sell. What the speculators have not realized is that the market has changed. As a general rule of thumb, when the media is talking about a great investment opportunity, the real opportunity has come and gone.Now that people have overbuilt, there are many more vacancies and properties for sale. Why?
Because the inventory of properties (supply) has outpaced the demand and the market turns down towards the Buy Low portion of the real estate cycle.
With vacancies increasing, landlords will do what they can to get a tenant in the home. Rent concessions will be commonplace as landlords offer free rent, lower deposits, or something else to entice tenants to come to them. Similar concessions will also be apparent with people selling their home.
As landlords/sellers begin offering these concessions, they are trying to offer something better than their competition. Rents/prices decline as a result. As inventory is not moving, declining construction is the result. Builders do not want to build if they cannot sell the property.
High vacancy will also be present in the bottom portion of the real estate cycle. Again, there will be more inventory than there will be people to fill them.
A change will happen in the market where a little activity will begin to build. This is usually a result of new jobs coming into an area. People will move into the area for the jobs and demand will rise as a result. This helps the demand catch up to the supply.
When the supply and demand begin to even out, investors that track these figures will begin to accumulate properties. The investors that understand this concept can watch the real estate market trends and adjust their strategy accordingly. With demand increasing, there will be low vacancy because people will be buying/renting.
Increased demand with buying and renting will force rents/prices to increase. And the cycle will begin again, and again, and again...
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pa target=_new href=http://www.real-estate-investing-cycle.com rel=nofollowhttp://www.real-estate-investing-cycle.com/a/pbr
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Boston Real Estate – Interest Rates and Inventory Must be Analyzed when Selling Your Boston Home
Author: Jay Rooneybr
Source: articleage.combr
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When selling your Boston home, its good practice to be aware of what similar homes in your neighborhood have recently sold for. Recent comparable sales are not only what a good Boston real estate agent should use for guidance when pricing your home, but also what a bank appraiser will use if and when your buyer applies for a mortgage to buy your home.
(Keep in mind though, that very rarely will you find a perfect comp for your home. Unless the home next door to you sold yesterday and it was exactly the same house, there is no perfect comparable for your home. A good Boston real estate agent should be able to come up with a list of five to ten comparable properties that sold within six months of the date of analysis. Your agent should then be able to make adjustments for location, size, condition, and other variables to come up with an appropriate suggested asking price for you home.)
But as important as recent comparable sales are in the process of appraising property, they should not be the only measuring stick you and your agent use when pricing your home. Even if the house next door to you is exactly the same as your home and it sold two months prior to the date you attempt to price your home, there are two other very important factors that you must be mindful of when pricing and selling your home: interest rates and inventory.
The effect that the interest rate has on the activity in the Boston real estate market and the economy as a whole can be classified as Economics 101. The more people have to pay in interest, the less they can pay toward the principal, and the less they can pay for your house. You must be mindful of this extremely important factor when attempting to price and sell your home. If the home next door to you sold two months ago, it may have been the same exact home in the same exact condition, however, the interest rate may have been lower or even higher when that home sold two months ago. The interest rate factor will greatly affect the sale price of your home and should be given a ton of consideration during the market analysis process. Your Boston real estate agent should be well aware of changes in interest rates and be able to answer any questions you might have on this topic.
The other factor that must be weighed when appraising value is the inventory of comparable homes on the market, which can sometimes be more important than recent comparable sales. If there were very few properties on the market like the home next door to your home when it sold two months ago, then it was a good market to sell in as demand was (most likely) greater than supply. If two months later you decide to sell and there are fifty other homes similar in size and condition on the market, then you will have a more difficult time than your neighbor did, as supply is (most likely) greater than demand. There are certainly exceptions to this rule and there are other variables that come into play, but the inventory of comparable homes and the average days on market of those homes should definitely be given strong consideration during the market analysis process.
(This is especially true when pricing and selling Boston condos, South Boston condos and Dorchester condos. Heavy condo development over the last five years has lead to a surplus in these areas. Your Boston real estate agent should be aware of the absorption rate and be able to inform you of the normal and healthy number of listings that should be on the market in your neighborhood at any given time.)
In conclusion, recent comparable sales will give you very good insight when attempting to arrive at an appropriate suggested asking price for your home, however, you and your Boston real estate agent must also be mindful of recent activity in interest rates and the inventory of homes you will be competing against if you decide to sell your home.
Rooney Real Estate is a full service residential real estate company servicing South Boston, the South Boston Seaport, and Dorchester for more than twenty years. In 2003 Rooney Real Estate was recognized by LINK, the Listings Information Network, as the top real estate firm in South Boston, MA, in total sales revenue. On May 10, 2005, MLS (Multiple Listing Service) listed Rooney Real Estate as the top firm in South Boston, MA, in total sales and total dollar volume thus far in 2005. Rooney Real Estate also has an unparalleled record of giving back to the youth sports leagues and non-profit organizations in the communities they service.
Call 1-866 ROON DOG, or visit www.rooney-re.com for more information.
Jay Rooney is a Vice President and a licensed Sales Agent at Rooney Real Estate, Inc., in Boston, Massachusetts. He is currently regarded as one of the top listing and selling real estate agents in the Boston real estate market and has won numerous awards for his real estate achievements. Email Jay at jay@rooney-re.com with questions about this article and for all of your Boston real estate needs. More information about Jay can be found at http://www.rooney-re.combr
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Helping Your Real Estate Agent
Author: Peter Narodnybr
Source: ezinearticles.combr
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Most individuals think of their real estate agent as someone who should help them and, of course, this is certainly the case. The endeavor of purchasing a home, however, is a complex one and one should be willing to help out their realtor from time to time. A Marin County, CA real estate agent is dealing with a complex and fast-paced market that offers their clients many options. The more the agent knows about their client, the better theyll be able to serve them in finding them the right home for them and their family.
A Marin County, CA real estate agent will generally be of the sort who makes great efforts to keep in touch. The Bay Area is famously a place characterized by technological innovations and realtors take advantage of this. Let the agent know about ones preferred means of contact. The agent will likely come upon some interesting options which are limited in terms of time. Being able to react quickly will help the agent to make sure that ones dream home is something that is not missed due to a lack of communication.
It helps to get to know ones agent a bit. A Marin County, CA real estate agent has a great many houses from which to choose at any given time. This means that, the better they know the client, the more time theyll spend offering the right homes. Personality is a huge part of purchasing any home. For instance, if a client hadnt expressly said they were looking for an historic home but mentioned an interest in history, the agent would certainly know that a good deal on such a property may still be of interest. This is how agents are able to avail their clients of happy surprises, in many cases.
In order for a transaction to be successful, a Marin County, CA real estate agent has to attend to a great deal of paperwork. Help the agent by filling in everything requested and by returning it promptly. The agents or their assistants are more than willing to help with this work, in most cases. A real estate agent is a professional who is engaged as much for their expertise and guidance as they are for anything else. Clients can help ensure theyre availed of that expertise and guidance by learning about their agent personally, as well.
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pPeter Narodny offers over 30 years of experience to home buyers and sellers in San Anselmo real estate and a target=_new href=http://www.marinrealestate.net/about.php rel=nofollowMarin real estate/a. They are the top a target=_new href=http://www.marinrealestate.net/san_anselmo_real_estate.php rel=nofollowSan Anselmo realtor/a team and have sold over 400 homes in the last ten years alone. If youre looking for a Marin realtor that offers the most sound advice and knowledge of, then visit MarinRealEstate.net today./pbr
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Mexico Real Estate – Top Retirement Lifestyle Choice for Canadians
Author: Thomas Lloydbr
Source: articlesbase.combr
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A Mexico Retirement for Canadians includes one of the most important factors to consider in your retirement; lifestyle. While budget and cost of day to day life are also a very important factor, the strong Canadian dollar, and continued price reductions in Mexico Real Estate make Mexico Retirement the perfect choice for the budget side of things. Yet, just as much as money, when you choose your retirement location, lifestyle and level of comfort and convenience must be considered, and when youre living in Mexico these items go happily hand in hand with the excellent budget choice it presents. First of all, lets quickly review why Mexico is an excellent option in terms of budget for Canadians who will soon be retiring. Anyone watching the Canadian dollar will know that it recently gained considerable strength on the U.S. dollar, hovering between 94 and 96 cents US. Since real estate for the international market is sold in U.S. dollars, this means Canadians currently have a lot more buying power than a year ago when the dollar was sitting around 80 cents U.S. This new buying power will mean either you can step up your luxury and comfort level one notch, or it means you can save a 10s of thousands dollars (or even 100s of thousands, depending on your budget) in your Mexico Real Estate purchase. Furthermore, as the recession is drawing to its end, Mexico properties are still being offered at reduced prices br
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pa rel=nofollow,nofollow href=http://www.topmexicorealestate.comMexico Real Estate/a NETWORK; Mexicos Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely! Region: a rel=nofollow,nofollow href=http://www.topmexicorealestate.com/playadelcarmen-real-estatePlaya del Carmen Real Estate/a by /ii /bThomas Lloyd/b graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. You can contact him at (512) 879-6546./pbr
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How one can benefit from real estate investment
Author: Jeff Adamsbr
Source: articlesbase.combr
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Ask any successful real estate investor and he will tell you that the best method to create personal wealth is to invest in real estate. When you invest in real estate in a carefully planned manner, your investment will fetch you excellent returns, unmatched by any other form of investment. Here are a few important facts about real estate investment:Although real estate investment carries risks like all other forms of investment, the price fluctuations are a lot slower than the stock market or investment in gold. The money you have invested in real estate will not crash overnight. At best, fall in real estate prices may be ten percent less than it was the previous day.One of the chief benefits of real estate investment is banks and other financial institutions will be willing to lend you large sums of money for buying real estate. It is difficult to borrow money for buying stocks as stock markets prices are speculative in nature and the risk factor is high.If you are intelligent and capable of a planned investment, then there are ways you can purchase real estate property for as low as seventy percent of its market value and then go for the big kill.Yet another important benefit is you can enjoy large scale tax advantages through depreciation. Any tax consultant will guide you how to pay least taxes on real estate holdings.In real estate investment, value addition is possible for you to enlarge your profits. For instance, you can increase the sales value of your property by making some modifications or additions to the property. You can add a garage or even a bedroom if space permits. You can renovate the house to fetch a better price.If you are keen to succeed in real estate business, you must educate yourself about the market and also regularly interact with fellow investors and real estate professionals who can help you meet your investment goals. A real estate investment club membership will provides these benefits. You can immensely benefit by joining a real estate investment club. There will be senior members who will be only too willing to offer you guidance. You can attend the periodic seminars that will discuss ways and means of making profit in the real estate market. Networking with experts in real estate business and interacting with peers can be highly useful. You can identify partners to join hands with you to successfully transact bigger business deals.Be quick to learn the tricks of the trade if you want to thrive in real estate business. It is not always easy to single-handedly manage affairs in real estate business. It is prudent to hire the real estate agents to help you when you are stuck with some property. For instance, a fellow real estate agent from the club can at times find you a buyer much sooner than you can on your own and help you close the deal. Paying him a small percentage of commission is certainly worthwhile. Please understand that it pays to invest in real estate. If you are serious about your real estate business and apply yourself diligently, real estate is indeed one of the smartest investments you could ever make.br
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pJeff Adams is an author for a rel=nofollow,nofollow href=http://www.realestatewebprofits.com/ title=Real Estate InvestingReal Estate Investing/a. He has written articles a rel=nofollow,nofollow href=http://www.realestatewebprofits.com/ title=Real estate InvestmentReal estate Investment/a. For information visit our site a rel=nofollow,nofollow href=http://www.realestatewebprofits.com/rewp/real-estate-investment-tips.php title=Real estate Investment tipsReal estate Investment tips/a/pbr
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Real Estate Leads 101: Back To The Basics Pt. 1
Author: Ashley Lichtybr
Source: articledashboard.combr
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Sometimes even the best real estate agents and brokers need a reminder of the basics when turning real estate leads into clients. Though the basics seem like simple skills on the surface, they are the building blocks of a strong business.
Rory Wilfong, co-founder of GetMyHomesValue and real estate trainer often comes across agents who lack these simple building blocks. I am often surprised how many agents dont have an effective plan for acquiring real estate leads, following up with their real estate leads and then nurturing their real estate leads to become future clients. Too many agents are simply stumbling over real estate leads and crossing their fingers in hopes that the lead will pick them for representation with their future real estate transactions.
With the dramatic increase of licensed real estate agents in the past few years, it is more important that ever that real estate agents are memorable to their real estate leads. According to the National Association of Realtors, their membership increased from 766,560 in 2000 to 1,265,367 last year. And that is just Realtors. You do not have to register with NAR in order to be a real estate agent, only to get the designation of Realtor. These numbers are enough to prove that if and agent wants to get anywhere with their real estate leads, they better stand out in the crowd. The best way to do this? Effective and creative follow-up! It goes back to learning applying the relatively simple skills involved in sales, marketing and customer service and adding your own creative flair to get your real estate leads to notice you.
Lets get back to the basics and thing about what really defines the term real estate leads. According to Wilfong, the definition of a lead is a consumer that is interested in possibly using your services either now or in the future. Its as simple as that. There are different types of real estate leads of course, buyers, sellers, for sale by owners, refinancing, etc. Real estate leads can come from various sources, direct mailing, contact through your website, from an open house.
Another way to think of your real estate leads are as clients. Start your follow up with the mindset that the lead WILL be your client. Real estate leads are clients until they become contractually obligated to another agent or sales person providing the same service as you are.
Many agents rate their real estate leads as cold, warm or hot, depending how far into the real estate process they are. It is important to keep in mind that at one point, even a hot lead was kind of cold, even if you didnt know about it! Cold real estate leads lead to hot real estate leads. Of course, many agents cast off hundreds of real estate leads a year because they consider them bogus. As Wilfong states, Like many agents, in the past I encountered my fair share of Mickey Mouse leads and I often use this as an example of agents. What would you do if you received a lead from Mickey Mouse?
In Wilfongs experience, many agents say they cast many real estate leads with odd names off as bogus.. He believes that driving to a home to present your information to Micky Mouse himself is a GREAT way to break the ice with the people actually living in the house. The lead will remember your humor, more than likely tell his friends about the incident, which of course leads to more real estate leads for an agent! Even a call to Mickey Mouse, if handled humorously, can get a positive response and build instant rapport.
If nothing else, real estate leads will almost always give a current address along with the fake name they may leave, simply because that is the property they need information on. You cant be afraid to do a little detective work and dig a little deeper if you want to be constantly converting your real estate leads into contracted clients./pbr
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Making Your Mark in the World of Real Estate Investing
Author: Daniel Mc Greybr
Source: articlesbase.combr
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If you want to make big money without spending your days trapped in small cubicle and following the orders of your strict boss, then you better try real estate investing. Investing in real estate is a great way to reap huge profits amid the economic recession. In addition, you make your own rules and you dictate the pace on how and when you make money. To succeed in real estate investing, however, it is important to create a mindset that you’re capable of making it big in this business. You have to believe right from the start that you’re going to be one of those investors who are sharing their success stories to inspire others. If you don’t have a positive outlook, it would be difficult for you to do well as a real estate investor. Aside from having self-confidence, you also have to take real estate investing seriously because it is a great way to make a living. Be proud of what you do and don’t consider it as a mere hobby. Because with hard work and determination, you can finally live the life you’ve been dreaming of through investing in real estate. One of the effective ways to become a successful real estate investor is to arm yourself with proper knowledge, skills, and information. As we all know, education is a key to success because being well-informed allows you to make smart decisions on tough situations. It also enables you to easily deal with things that can either make or break your career. Fortunately, there are lots of learning materials that can help boost your knowledge of real estate investing. In addition, many real estate experts are sharing their tricks of the trade to those who are interested in joining the housing business. Meanwhile, if you are looking for quality real estate content, you should visit www.Real-Estate-Investing-Videos.com. The website features top notch real estate articles and videos that can enhance your investing skills.br
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pRehab Real Estate is your perfect guide to the exciting and lucrative world of real estate investing. Whether youre into rehabbing houses, property investment buying, or fix and flip, well teach you everything you need to know so that youll earn MAXIMUM PROFIT in each and every deal./pbr
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Escondido, San Diego, Real Estate Market Trends And Community Information, August 2006
Author: Real Estate Prosbr
Source: articledashboard.combr
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COMMUNITY INFORMATION
Escondido is situated in the northern inland part of San Diego County within the state of California. There are approximately 165,992 residents in these Zip codes (92025, 92026, 92027, 92029) and 53,641 households. The median age of residents is 33.36 years.
TEMPERATURE
The temperature in Escondido is relatively moderate. The warmest time of year occurs in August during which temperatures reach an average high of 76?F. The coldest time of year occurs in December and January with average temperatures falling to 55?F.
HOME AND REAL ESTATE PRICES
The housing options in Escondido include single-family homes and properties, condominiums, townhouses, and apartments. The price of housing is as follows:
? One bedroom townhouse/condominium start in the high $100,000s.
? Two bedroom townhouse/condominium start in the low $200,000s.
? Three bedroom townhouse/condominium start in the high $200,000s.
? Two bedroom single-family homes start in the low $300,000s
? Three bedroom single-family homes start in the mid $300,000s
? Four bedroom single-family homes start in the mid $400,000s
REAL ESTATE MARKET TRENDS
As with most products and services in the United States, price shifts in the real estate industry are subject to the forces of supply and demand. Whether its a buyers market or a sellers market, it is useful to evaluate home sales data for the most recent month available (June 2006), compared against the same period in the previous year (June 2005). The data below was obtained from Dqnews, and covers real estate sales data for June 2006.
For the 92025 Zip Code, the median price of resale single-family homes in June 2006 was $608,500, which represents a 21.9% increase from the pervious year. A total of 28 homes for were sold in June 2006. For resale condominiums, the median price in June 2006 was $324,000, which represents a 2.5% decline from the previous year. A total of 10 condominiums sold in June 2006. For new construction single-family homes and condominiums combined, the median price in June 2006 was $544,500, which represents a 31.3% drop from the previous year. A total of 2 new properties were sold in June 2006.
For the 92026 Zip Code, the median price of resale single-family homes in June 2006 was $514,000, which represents a 0.8% increase from the pervious year. A total of 35 homes for were sold in June 2006. For resale condominiums, the median price in June 2006 was $300,000, which represents a 14.5%decline from the previous year. A total of 10 condominiums sold in June 2006. For new construction single-family homes and condominiums combined, the median price in June 2006 was $718,000, which represents a 19.7% increase from the previous year. A total of 6 new properties were sold in June 2006.
For the 92027 Zip Code, the median price of resale single-family homes in June 2006 was $490,000, which represents a 6.8% increase from the pervious year. A total of 55 homes for were sold in June 2006. For resale condominiums, the median price in June 2006 was $298,000, which represents a 6.4% increase from the previous year. A total of 7 condominiums sold in June 2006. For new construction single-family homes and condominiums combined, the median price in June 2006 was $951,000, which represents a 27.2% increase from the previous year. A total of 5 new properties were sold in June 2006.
For the 92029 Zip Code, the median price of resale single family homes in June 2006 was $636,000, which represents a 2.6%increase from the pervious year. A total of 18 homes for were sold in June 2006. For resale condominiums, the median price in June 2006 was $315,000, which represents a 17.6% decline from the previous year. Only 1 condominium sold in June 2006.
Homebuyers and home sellers should keep in mind that the data above is simply a snapshot in time. Therefore, the data must be evaluated over a longer duration to understand enduring market trends./pbr
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Commercial Real Estate Brokers
Author: Marcus Petersonbr
Source: articleage.combr
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Remember that buying or selling commercial real estate is significantly different from buying residential real estate. That is why you need the help of licensed commercial real estate brokers to get the best deals.
What commercial real estate brokers can do for you
Licensed commercial real estate brokers are trained to assist you to market your commercial real estate property to the right audience. Your retail, office, industrial or multi-family property will receive publicity that will attract only the best buyers and investors.
Most commercial real estate brokers make use of multiple listing service and extensive multimedia networks to make sure that your property reaches interested buyers. When you leave everything in the hands of commercial real estate brokers, your property will find it is way to newspapers and relevant Internet sites in no time.
What to look for in commercial real estate brokers
More often than not, experience differentiates a good commercial real estate broker from a mediocre one. Choose brokers that have at least 5 years experience successfully selling commercial real estate properties. Such experienced professionals can bring a lot to the table - market intuition, thorough knowledge in research and development of real estate pitches and marketing ideas. Good commercial real estate brokers will not only help you sell your commercial real estate property, they will help you maximize the value of your asset before the sale, so that you can increase profit.
You should look for commercial real estate brokers who are available to assist you anytime, 24 hours a day, seven days a week. Some brokerage companies have very efficient web-based project management technologies that let you access your project whenever you want. Some also have round-the-clock phone support.
Commercial Real Estate provides detailed information on Commercial Real Estate, Commercial Real Estate Loans, Commercial Real Estate Agents, Commercial Real Estate Brokers and more. Commercial Real Estate is affiliated with National Association Of Realtors.
Article Source: http://EzineArticles.com/?expert=Marcus_Petersonbr
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