Post Boom Real Estate Investing

The boom times of buying a single family home or condo and quickly flipping it for a profit has passed. In spite of warnings of housing bubbles and a real estate market waiting for disaster, investors this time last year were feverishly buying up real estate in Florida, Las Vegas, Arizona and other hot spots. Well it all depends on the market. There is not just one real estate market in the US but many local markets. Investors who got in early indeed have made profits. Dreams of real estate riches for these people likely have not materialized. Because of the timeframe people were looking to make money in and their finances. If flipping for profit was not a goal, many investors bought investor homes, planning to rent them out to cover the cost of the mortgage on the investment home. Well what if there are no renters? Then the investor must have the funds available to pay the mortgage while looking for a renter. As a last resort the investor could always sell the home. Suppose there are many investors in one area facing the same problem and they all try to sell their investment homes at the same time? Now the home values start to drop, homes sit on the market for a long time and overextended investors are facing a financial nightmare. This has happened in some areas of the country. One of the real estate markets that saw the greatest influx of investors was in the Phoenix area. When you get too many investors buying up homes, the local market becomes more volatile. As a result some zip codes in the Phoenix area are seeing a decline in prices and some are not. One thing in common is a slower appreciation of home prices. In the worst hit areas there are price declines. Looking at the nationwide picture we see foreclosure rates rising in areas like southern California. In spite of the rising foreclosure rates, they are still well below historical highs. The main point for real estate investors is their timeframe and financial situation. If you can't afford to carry the mortgage for many months if renters cannot be found, don't invest. The markets have changed and finding renters may not be as easy.    Related content: boom: refuse: show unwillingness towards; "he declined to join the group on a hike" Also referred to as a contraction or downturn, a decline basically marks the end of the period of growth in the business cycle. Declines are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced production by businesses. Also referred to as Denial, a decline is the refusal or rejection of a grant request. Some declination letters explain why the grant was not made A transaction that has not been allowed by the card issuing bank after an authorization is sent by the merchant (See also: Approval) go down in value; "the stock market corrected"; "prices slumped" decline: Boom! is a 1968 film starring Elizabeth Taylor, Richard Burton and Noël Coward. It was directed by Joseph Losey and adapted from Tennessee Williams' play The Milk Train Doesn't Stop Here Anymore. A horizontal spar extending from the mast to which the foot of a sail is attached. Shoulders lower than hips. nationwide: A cantilever structure: 1 attached to lifting or excavating equipment and at the outer end of which is fixed the pulley over which the hoist rope passes 2 carrying a conveyor used to feed a stockpile. Boom is the thirteenth episode of the American crime drama which is set in Las Vegas, Nevada. It originally aired as Episode 13 of on February 8 Also referred to as a contraction or downturn, a decline basically marks the end of the period of growth in the business cycle. Declines are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced production by businesses.