Real Estate – As US Real Estate Crashes Protect Yourself

 


Visitors: 120

Real estate prices have risen nicely in the last few years and most buyers speculating in real estate have made some great profits, however changes are coming that will see the real estate price tumble in value and its already started.

Prices are declining and will soon crash. Why? To get the real estate outlook and what may happen we have to look at the wider picture.

Real estate prices have already slowed

The real estate market carried the American economy through the 2000 stock-market crash, a recession and climbing oil prices has lost its momentum in recent months and now has begun to slow the economy, which saw growth at a modest 2.5 recently

That was a big fall from 5.6 percent growth rate of the first quarter and was caused partly by the third consecutive quarterly decline in spending on real estate, after several years of great growth. Now were going to get a crash

1. Inflation & Interest rates are on the move

When money is cheap people spend it and a lot of this money flows into real estate when money is expensive we have the opposite its pure and simple economics.

If you have taken a look at commodity prices such as gasoline, you will see rises and this is reflected in inflation moving up. The Fed has stepped in to raise rates to combat inflation and will raise them further in the months ahead.

By its very nature this means that there is less money to spend and house prices are affected already.

There are less new buyers and existing buyers are reluctant to move.

A real estate market that is booming needs to see real estate being turned over i. e. new buyers entering and people using their profits to move on, or buy second and vacation homes.

Higher interest rates also hurt buyers who took out adjustable mortgages (ARMs) a few years ago to get onto the property ladder

The benefit of these mortgages is that buyers get low interest rates that are reflected in monthly payments for few years, then monthly repayments are increased dramatically.

3. Psychology

Any market is affected by the psychology of the people who invest in it.

When confidence is high people buy, when it’s low they sell.

This is true of any market, not just real estate and people are selling now as over 70% of Americans believe real estate prices will fall.

The result?

A large number of homes are going up for sale in a period that has seen record new home construction and a huge amount of new homes for sale.

A Simple equation

Lets make it simple

Interest Rates rising = less money in economy = less to spend on real estate

Investor psychology down = increased selling & decreased buying = falling real estate prices

The result? A gentle decline soon ends uip in a crash.

Protecting yourself & Making money from real estate

If you invest in real estate for a living, have a second home or are wondering about buying one, then you can protect yourself.

The answer is invest in overseas property and look for capital growth you can buy cheaper and get bigger gains.

Consider this:

In Costa Rica, just a 3 hour flight from the US. Investors are pouring in to buy second homes and investment properties.

They buy at 70% cheaper than in the US, they get the same rights as residents, in a stable, friendly and beautiful country.

Even better, they can take advantage of increasing real estate prices with prime property up 500% in the last 5 years and a buoyant rental market.

When the US market crashes make huge gains here

Why? Because people still want second homes, investment property and they want value and that’s what they get in Costa Rica and its only 3 hours away!

Make huge Gains If US Real estate falls

Americans spending in Costa Rica is already at a record high and as the US market falls investment will increase as the market offers a fantastic alternative with low risk to build wealth.

If you are looking to protect yourself from falling property prices in the US, Consider Costa Rica and you could find make far bigger gains than you ever did in the US.

FREE REPORT !

On how to get profit potential in Costa Rica by investing in property then visit our website for more free information, the chance to win a FREE vacation and see this opportunity for yourself at http://www.costaricalandlots.com .

(825)

Article Source:


 
Rate this Article: 
 
Kings Bay Georgia Real Estate - An Amusing Tale About a Real Estate Agent
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Cash is King as Real Estate Crashes!

by: Bill Young (January 05, 2006) 
(Real Estate)

Stop Starving Your Bank Account, Money Making Real Estate Marketing Ideas For ..

by: Teran Dale (July 06, 2008) 
(Business/Marketing)

Real Estate Investing- A Hidden Secret That Will Make Your Real Estate ..

by: Andrew Kryzak (July 18, 2007) 
(Investing)

Hire a Professional Homeland Real Estate Agent for Stress-Free Real Estate ..

by: Bruce Markey (January 03, 2011) 
(Real Estate)

7 Tips to Real Estate Agent's Success: Tip #7 - Find a Mentor or Real Estate ..

by: Leanne Hoagland-Smith (September 08, 2006) 
(Real Estate)

Real Estate Marketing Reports Make for Effective Real Estate Web Site Design

by: Lanard Perry (September 23, 2006) 
(Internet and Businesses Online)

At Last Real Estate Marketing Solutions That Attracts Listings and Buyers in ..

by: Teran Dale (July 12, 2008) 
(Business/Marketing)

Real Estate Investing - 3 Powerful Ways to Kick Start Your Real Estate Business

by: Charlie Landry (September 18, 2008) 
(Investing)

Real Estate Lead Generation Attracting Attention With Real Estate Virtual Tours

by: Cole Stevens (June 17, 2008) 
(Real Estate/Selling)

Kings Bay Georgia Real Estate - An Amusing Tale About a Real Estate Agent

by: Glenn Keller (May 10, 2005) 
(Real Estate)