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Historically, real estate often runs in cycles of approximately 7-10 years. Real estate often goes up (sometimes dramatically) for several years, tops out, goes down for several years, hits bottom and then starts going up again, beginning another 7-10 year cycle. It's a bell curve (shaped like a hill). And, when you are considering investing in real estate, you can simply figure out where you are on that 7-10 year bell curve and that can tell you in what direction real estate values are likely to go, and for how long.
note: this is the average historical method and does not take into account prolonged or dramatic upward or downward swings (bubbles or crashes).
If you are investing in real estate for a relatively short term gain (such as 3-7 years) and you buy at or near the top you could see the value of your real estate go down and you would historically have to wait approximately 7-10 years to see it regain its value and/or establish new highs. If, on the other hand, you are buying real estate to hold it for a long period of time (such as 20 years or more) you need not generally be overly concerned with these up and down 7-10 year cycles.
And when it comes to highly volatile New York or California real estate all normal timing and logic goes out the window!
For real estate investment timing:
How Much Is Your Real Estate Worth?Today, the asking price of most properties is quite large and usually beyond the normal means of the consumer. This is why a lot of people apply for a loan in order to acquire property.
Pre-Qualification Stage
To pre-qualify yourself for such a loan, you would need the help of a real estate tax mortgage calculator. A real estate tax mortgage calculator can calculate a number of things that pertain to mortgages. One of the first things that real estate tax mortgage calculators do is to see if you pre-qualify for a mortgage.
A real estate tax mortgage calculator would need some information fr ..
1. try to buy at the low end of the current 7-10 year cycle
2. try to sell at the high end of the 7-10 year cycle
3. if you are in the wrong part of the current 7-10 year cycle, and can wait, a little patience can pay off handsomely
4. real estate is not a highly liquid investment; getting in and getting out takes t-i-m-e
5. in a real estate bubble or crash it's better to be safe than sorry
How to Become a Real Estate Agent The process of becoming a real estate agent is fairly simple, although it does vary a lot from state to state. Here are the fundamentals of becoming a real estate agent. a) License Requirements Each state has different licensing laws, so you will need to look at your local requirements. However, in general you will have to: -Meet an age requirement -Pass a background check -Complete approved real estate courses from a state-approved school -Pass a state exam -Complete an application form -Submit various fees Agents just getting their license work for a real estate broker. If you decide at some point t ..
6. New York and California real estate often does not conform to the typical cycle (and thus may defy timing as well as logic!)
About the author:
Alan Korber is a real estate investor with over 25 years of professional experience who wisely diversifies into other investments. He is also the creator and publisher of the Korber Strategy, a simple and successful stock market investment strategy which can produce annualized returns of 50%-100%. His website is http://akorber.r8.org
Alan KorberReal Estate Timing - when to buy, sell, hold
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