Is The Real Estate Bubble Going To BurstIs The Real Estate Bubble Going To Burst

A question we're all hearing a lot these days is: "Is the real estate bubble going to burst?" All the financial pundits are eager to give their opinion, and it's often one of doom and gloom. It seems that some reporters and even some analysts are comparing today's real estate market with the rise and fall of dotcoms in the late 1990s. It is not an apples-to-apples comparison.

Real estate markets are local. The general market in one area can be booming while a few hundred miles away, the market is flat or declining. And there are strategies for investing in each type of market--growing, flat, declining--that will allow you to generate cash flow and build wealth no matter where you are.

Are the booming markets due for a bust? I don't think so. At the worst, we can expect to see the rate of valuation increase slow down in some areas, but we aren't likely to see values decline in most areas--and if we do, it will not be a significant amount.

This shouldn't have a significant impact on investors who own income-producing real estate. Here's an example to explain why: Let's say you own a four-unit apartment building. For the last three years, the property's value has been increasing at 10-15 percent per year, then suddenly it drops to an appreciation rate of just 3 percent. Are you going to reduce your rents just because your appreciation rate has changed? Certainly not. Your rents will remain in line with the market and will be generating positive cash flow while you continue to build equity in the property.

The real estate market, just like the overall economy, is subject to cycles. Savvy real estate investors understand those cycles and know how to deal with them. People are always going to need places to live and work. That means as long as there are people on this planet, there will be opportunities in real estate. Don't worry about the "real estate bubble" -- instead, focus on using proven investment strategies that will allow you to make money and build wealth in any market.

by Russ Whitney
References and Bibliography

Russ Whitney, chairman and CEO of Whitney Information Network, Inc., is a recognized worldwide leader in the real estate investment and financial training fields. He is the bestselling author of Building Wealth (Simon & Schuster); Millionaire Real Estate Mentor (Dearborn Trade Publishing), and The Millionaire Real Estate Mindset (Doubleday). Russ Whitney has also produced numerous successful investing and personal development training programs on general wealth-building, real estate investing, stock investing, communications, selling skills, credit, and more. For more opinions and comments by Russ Whitney, visit his blog at http://www.russwhitneyblog.com

Rated:NR/0 Votes
1 Views
Add To My Article Reading List
Add To My Article Reading List
Print Article
Print
More Article By Russ Whitney
More Article by Russ Whitney
Share
More Articles From Real Estate
More Articles From Real Estate
Related Articles and Readings
The Real Estate Bubble Fallacy By: Michael Setz
There has been a lot of talk lately about the "Real Estate Bubble", and a lot of folks are asking the question: "When it is going to burst"?They are saying that the market just can't sustain this level of growth and appreciation much longer, and I heat them say that ...
Real Estate Bubble How to Profit in ANY Real Estate Market By: Jeanette Joy Fisher
With all the talk of a pending real estate bubble or falling sales prices, real estate investors need to guard their money and find new ways to make money. No matter what the market does, you can make money investing in real estate when you know what to do and ...
Real Estate Bubble Talk By: Jeanette Joy Fisher
Last spring, I was invited to go to Philadelphia and participate in a "real estate bubble" discussion on Ch 8's "Money Matters Today." Television reporters, newspapers, and media hype love scaring you to grab your attention. On the TV show, I defended the real estate market.What's behind all this bubble ...
Story behind real estate bubble By: Agnes Celina
Among the factors persons timid far from real-estate will be the nervous about the likely real-estate 'bubble. i These types of similar persons invest in stocks and options, realizing the actual volatility ones, and also claim ...
5 Steps to Safeguard Yourself from a Real Estate Bubble By: Andrew Lo
As any Internet stock investor can tell you, it is no fun to be in a bubble when it bursts. While there is still considerable debate about whether or not the recent run up in home prices represents a true bubble, it is certainly prudent for those in the real ...
The information provided in this article and/or the comments is the sole responsibility of their respective authors and does not necessarily reflect the opinion of ezinepost.com. ezinepost.com  does not endorse any article and/or comments published by our web users unless otherwise noted. 

Member Panel

login to submit articles and more

StatisticsEZINEPOST.COM

  • » Active Categories: 419
  • » Active Articles:252096
  • » Active Authors:32163
  • » Active Members: 35787
  • » Statistics Updated:
    - Sat Aug 11th, 2018 01:04PM EST