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Real Estate Information |
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The Real Estate Bubble-When Will it Burst?
More and more individuals are realizing that real estate is much safer, and a better return on investment than many traditional investment vehicles. Unlike stocks or bonds, real estate investments can usually be liquidated in order for the investor to access funds in far less time. Additionally, unlike many other investment vehicles, real estate does not come with the stiff penalties associated with early withdrawal. In most cases, investors can liquidate and not have to worry about losing large sums of money. Finally, real estate provides the assurance of a higher yield of return than other types of investment. On average, real estate appreciates about 4% per year. That means that a property you purchased five years ago, under normal circumstances with no significant wear and tear, would be worth at least 20% more than the amount you paid for it five years ago. Some real estate markets perform significantly better than others at given times and with a mild remodeling or upgrade you could be looking at substantially higher returns on your investment. Given these facts, it's no wonder so many people are jumping on the real estate investment band wagon. It begs the question however; when will the real estate bubble burst? There has been some speculation that the wild investment in the real estate market and they hype of outrageous investment returns has no where to go but crashing back down to Earth. After all; how is possible that real estate investments could possibly continue to double as they have in the last few years? Some critics even point to the fall of the real estate market in Japan in the late 1980's. Homes that were worth thousands of dollars are now only worth a fraction of that amount while the homeowners still owe almost the entire full amount of the first mortgage. While diversity is always a good idea and placing all of your investment funds in one vehicle, such as real estate, is never a good idea; there is reason to believe that the real estate bubble in the US is not about to end any time soon. This is true for a wide variety of reasons. First, simply supply and demand. Mark Twain once suggested investing in real estate because as he intimated, they simply aren't making any more of it. What we have is all we have and when there is a strong enough demand; it can be quite valuable. Individuals and families are looking for safe, secure and affordable housing; however there is a dangerous shortage of this commodity. This is the primary reasons why flipping real estate has become almost a national hobby. It pays and it pays well. Under ideal circumstances, an investor can purchase a property with financing from the credit union, provide a model renovation and then resell the property with a return of around 15-20% on their investment. This may occur anywhere between 3-6 months from the initial purchase date. Not bad. Professional investors have also learned how to tap into the huge profit potential of foreclosed homes, which they able to be purchased for under market value and then flipped for an even larger profit. As with any type of investment, one of the keys to investing in real estate is in understanding when to sell. Holding a piece of property is rarely in the financial best interest of the investor. Some investors have found that a mixed strategy of holding and selling works well to provide income returns; however the best strategy in real estate investment remains flipping on short term projects to maximize profit potentials and reduce risks. Nicole Soltau is the President and Founder of CreditUnionRate.com.
MORE RESOURCES: Costar sues Zillow over photos, claims ‘systematic infringement’ Real Estate News by RealEstateNews.com After 30 years, Linda A. Gary Real Estate moves office from prominent Worth Avenue corner Yahoo Home Blackstone's Wesley LePatner, a mentor to women and real estate investing leader, killed in NYC office shooting Business Insider Real Estate Investment Trusts Score Legislative Wins Forvis Mazars US Real estate: Home prices climb in Martin, Indian River counties; fall in St. Lucie County Treasure Coast News After 30 years, Linda A. Gary Real Estate moves office from prominent Worth Avenue corner Palm Beach Daily News Seattle-area real estate startup Flyhomes raises $15M as it pivots to 'Buy Before You Sell' model GeekWire I-78/I-81 Corridor commercial real estate activity picking up Lehigh Valley Business Troy Furbay has been appointed Managing Director, Hospitality at Crescent Real Estate LLC Hospitality Net ‘Walking beside him’: Daughter continues stepfather’s real estate dream Mountain Home Observer The market is changing — and the industry's old rules are outdated Real Estate News by RealEstateNews.com Real estate: Condo prices rise in Indian River County; fall in Martin, St. Lucie counties Treasure Coast News Big Moves in Tucson: KMS Realty Merges with United Real Estate Specialists to Expand Services and Reach PR Newswire Richland County property transfers recorded July 21-24 Mansfield News Journal Central Pa. real estate company expands to Georgia Central Penn Business Journal US industrial real estate investor Terreno sells $82m portfolio IPE Real Assets America's Unhinged Real Estate Market Is Driving Down the Birth Rate Business Insider Pacific Development and PGIM Real Estate Land $97 Million Construction Loan for Landmark Mixed-Housing Project in Santa Rosa Yahoo Finance Double digit price increases for Putnam real estate Mid Hudson News $25.1M Refinancing Secured for Poplar Plaza Shopping Center in Memphis Boston Real Estate Times Real Estate Expert Jody Wainio of Buyers Choice Realty Shares Advice on Mortgage Pre-Approvals in HelloNation GlobeNewswire Fed Interest Rate Predictions: No Cut Expected Today, July 30, 2025 - Norada Real Estate Investments Fed Interest Rate Predictions: No Cut Expected Today, July 30, 2025 Norada Real Estate Investments Atlanta real estate mogul, former Hawks owner Tom Cousins dies at 93 Atlanta News First RE/MAX revenue continues to slip despite agent gains Real Estate News by RealEstateNews.com Haag-Brown Commercial Real Estate to open Bentonville office Talk Business & Politics Inside Zillow’s summer launch: 5 new tools built for agents - Real Estate News by RealEstateNews.com Inside Zillow’s summer launch: 5 new tools built for agents Real Estate News by RealEstateNews.com Executive Killed in Manhattan Shooting Was CEO of Blackstone's $53 Billion Real Estate Megafund Realtor.com Top residential real estate sales for July 14-18 in Longboat, Lido, St. Armands, Bird Key Your Observer Real estate transfers: 7/30 Toledo Blade Leading Arizona Real Estate Team JBRE Joins Real Brokerage, Bringing $310M Sales Portfolio Stock Titan Delaware June home sales stronger than national numbers; median sold price at record high The News Journal News | UK commercial real estate investment slips slightly to £10 billion in second quarter - CoStar Inside Hulk Hogan’s $11 Million Real Estate Empire EntertainmentNow Real Estate Transactions | July 14-18, 2025 Republic-Times Arkansas Commissioner of State Lands to auction more than 700 tax delinquent real estate parcels Thursday Hot Springs Sentinel Record Real estate office renovating former daycare The News-Enterprise Atlanta real estate tycoon Tom Cousins has died at 93 Rough Draft Atlanta Former Patrizia exec joins Oryx Real Estate Green Street News Christie’s Debuts Crypto Real Estate Division The New York Times The real estate market: 5 key themes to watch this week Real Estate News by RealEstateNews.com Ledge Road property in Newport sold for $3.3 million tops latest Newport County sales Newport Daily News Exclusive: Apple to buy another Silicon Valley campus for $365 million San Francisco Chronicle Real Estate Giant Anywhere Gives 100,000+ Agents Free Access to Canva Enterprise AI Marketing Platform Stock Titan Two of Frank Lloyd Wright’s earliest works are making real estate headlines Chicago Star Media Rusk County real estate transactions The Ladysmith News Real estate trends highlighted Morrow County Sentinel South Carolina RSIC CIO announces departure Institutional Real Estate, Inc. Real Estate Transactions BusinessWest Jimenez Law Firm, P.A. Named Trusted Residential Real Estate Lawyer in Jacksonville for Homebuyers openPR.com Asia Pacific commercial real estate investment surges to $31.2b in second quarter 2025 Institutional Real Estate, Inc. Luxury Presence Debuts the First Fully Autonomous AI Marketing Team for Real Estate Agents Business Wire Once a vaudeville playhouse, the historic Baker Theater in Dover is listed for $3.7M - Bergen Record Alex MacWilliam of Alex MacWilliam Real Estate in Vero Beach Shares Hurricane Preparedness Strategies to Protect Property Investment in HelloNation The Manila Times |
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