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In addition,
cycles tend to favor
ups rather than
downs. It is not uncommon to see large cycles of appreciation and much smaller downward cycles. In other words,
current double-digit growth we've all come to know and love in recent years will likely be followed by downturns of single digit declines. Its like taking two steps forward and one step back.
In
big picture you will still be further ahead than when you started. You may see slower growth, but it will still be growth.
Real Estate is a Basic Necessity People need to live somewhere. They need a roof over their head and their children's heads. Like food and clothing we must have a home. People don't need stocks or bonds. Therefore, you can be sure that whether
market is high or low in growth, whether interest rates are up or down, people will be buying, renting, leasing, and selling homes. It is as perennial as
years.
This Real Estate Wave Has Been Around Awhile I don't know when you first realized we were in an up market in real estate, but it has been on a solid upward trend for at least
last 3-4 years. It didn't just happen yesterday. Of course like anything else, awareness of
general public is a bit latent, and dependant upon
media. It has only been lately that
media has really focused on it and thrust it onto
front page.
The old adage "Success breeds success" is also true. The momentum will grow as other more traditional investors continue to jump on
band wagon and pour their money and resources into real estate investment. It tends to create a perpetual, self-feeding market that is ideal for more seasoned investors.
Real Estate is Local and Regional It is true that even in today's real estate boom, there are areas in
United States that are not enjoying
high rates of return that others are experiencing. California is a fantastic place to invest, so is Arizona and a host of other places.But
Rust Belt states are not as fortunate. Watch what happens to Florida home values after this horrendous hurricane season. This is because real estate is driven by
primary capitalistic force of Supply and Demand.
Generally speaking, property values increase in areas where
job market is strong, and where there are more people moving into than away from. Of course there are other factors to consider; including interest rates, availability of funding, climate, and governmental policies. These are all important and you must be cognizant of their impacts to your strategy.
However, it is true no that matter what
rates are or how nice
climate is, people will continue to migrate where there are abundant job markets and affordable housing. If you can stay just slightly ahead of that migration, you will profit immensely.
Real Estate Investing is Diverse You can invest in so many different ways, from foreclosures and fix and flips, to buy and hold and everything in between. Right now
commercial space is relatively soft. It will recover no doubt, but people investing in single family homes are probably doing slightly better in returns. Vacancies are up and rents are down for commercial properties, but fortunately,
forecast is for this sector to improve over
next few years.
The key to successful real estate investing is to understand
forces, trends, and conditions that are driving
market. BE AWARE of your surroundings; Read articles and stay on top of industry news; Look in your own area at
job market and forecasts. Check my website www.realestateinvestment.net for all
news and information you need to help you succeed in your real estate investing career.
There is no real estate bubble, but there is a real estate wave. Like any dedicated surfer, when
surf's up, get in
water and catch a wave! But watch for danger, be flexible, and be smart. Invest wisely and you can prosper in any real estate market.

Michael Setz is the founder and publisher of www.realestateinvestment.net, the network created for successful real estate investors.