| |
| |
|
Real Estate Information |
|
|
|
Cutting Edge Real Estate: Is There Anything New? Part 1
The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago. The basic principles will never change. Is this true? Only part of it? Well, lets look at what is different in the real estate world. Also, lets see what is the same. Because of the unbelievable appreciation of land in recent years the real estate industry has grabbed the attention of Americans and also the world ( investment opportunities are worldwide) like it hasn't done for a long time. There were certainly periods in the USA's history where people were absolutely overtaken with the idea of making money from and possessing real estate. Take the decades in the 1800s as an example when people risked their lives to go west. The risks were amazing but the idea of a better life and of having their own land made it worthwhile. This is certainly a situation that could be described as being one that hasn't changed much because people are still looking at real estate investments, land development, land deals, building homes, acquiring land, and just looking for a better life. That will never change I believe even if some day, hundreds of years from now it means buying land on space cities and maybe even the moon. Heck, I don't think the idea of buying condos in space is really that far away actually. It will happen. ( Ok! This example can be described as a BIG difference.) Then again citing the 1800s people can also say things are dramatically different now than they were 175 years ago. The price for one. Remember the Louisiana Purchase? I think the US bought about ½ the states for the price of a pickup truck now days. Or in a more recent example, how about our purchase of Alaska from Russia? Another good speculative real estate deal for the US. Sorry to all the Russian and French readers out there. One thing the US has always seemed to be pretty good at is acquiring land at a good price. We haven't done that in a while though and I won't get into the reasons why not, as that would make this article an e-book for sure. Oh yes, the Manhattan deal was a good one for the USA also. We won't go into the political discussions of what happened to the Native Americans here either. So what is really new now? How about creative financing? This has been a big change in the last twenty years or so. It's all about getting more people able to buy homes. This helps the whole real estate industry as a whole. Not just the lower income levels who are able to buy the more expensive homes now days, but also the rich people as a kind of reverse "trickle down" theory. I will name this my trickle up theory. The original trickle down theory, which I was never a big believer in by the way, was about cutting taxes for the rich and making things easier for them in a business sense and then the money will trickle down to the middle and lower classes because the rich will be spending more money, thus creating more jobs and more wealth for the lower classes. This doesn't really work as well as some think in my opinion because the wealthy many times just keep their money in investments which don't trickle down as much. They trickle down but a portfolio of millions or billions doesn't really create as many jobs as would be created if all that money was in the hands of middle class workers where it would be put right back into the economy. But when lower income people can buy homes it certainly helps upper class investors because this creates more demand and with less supply the prices go up for everyone. Something else that is new and getting more and more common is interest only mortgages. This also allows more people to get into the home buying market. Some believe the interest only mortgages will be a bad thing that will help burst the current so called housing bubble or real estate bubble. That is yet to be seen, but what is clear is that these creative financing solutions are helping thousands buy their homes. The interest only loans are also helping the real estate investors quite a bit, especially those who are looking to buy, repair and sell. Or those who are looking to buy a piece of land, build on it and flip it ( sell it ). These people like the no interest loans because they don't really care about paying down the principal. The wrap around mortgage is a mortgage that isn't new. It has been around for a while but after losing popularity in the 70s it may be making a come back. Check out this link that describes it in more detail and has an e-book that goes into greater detail about the "wraparound mortgage"; The Secrets of the Little Known Wraparound Mortgages. http://www.automateyourwebsite.com/app/?af=268818&u=http://www.cashflowinstitute.com/wrap.htm Here's another very popular newer type of loan, the non-income verification loans, also known as NIV loans and stated income loans. This has also been a part of the creative financing process of finding ways to get more people into loans. Actually it just shows that banks and mortgage companies have lowered the qualifications and standards to buy a home. That is a good thing as far as I am concerned. The rich may be getting richer but at least the poor have a better chance of owning a home. The middle class also. Statistics show that the home owners percentage is at an all time high in most areas. This has a lot to do with these ideas such as the "stated income" or 'niv loans'. Here is an article about the 'NIV loan; http://www.cutting-edge-real-estate.com/nivloans.htm The real estate industry is the best industry in the world I believe but first make sure you look at as much information as you can find before investing. Well, to a certain extent anyways. Don't wait too long. At some point you need to take action whether it is buying your first home, second home, investment home or a development. Don't be one of those who says " I wish I had bought a house way back when." Tim Phelan is a full time internet marketer who has been self employed for the last 12 years. Real estate, the environment, art, world culture, politics are some of his other interests. Visit this site for some info on two of these interests: http://www.cutting-edge-real-estate.com Blog: http://timphelansblog.blogspot.com/ Copyright Tim Phelan 2005
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Real Estate Investing - So You Want to be a Landlord! Is landlording the way to go if you are starting into real estate investing today?Receiving cash flow from rental residuals is an exciting idea. If the rental housing is congregated in large apartments within a focused area, the costs of management and maintenance are more economical. A Few Easy Ways To Take The Headache Out Of Moving Moving from one house to another is always a challenge, but it doesn't have to be a nightmare. Here are some simple tips on how to get it done with minimal stress and strain. Buying a Newly-Built Home? Ten Benefits of Using a Real Estate Professional It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. However, by using a real estate professional, you have someone to protect your interests and guide you along the right path. How to Get Financing after Filing Bankruptcy If you're thinking about buying a home but have declared bankruptcy in the past, don't give up hope. There are still ways for you to be able to find a loan, even if your credit history is less than sterling. Sell Your Home Without Paying Any Commissions All of us know that real estate commissions can work out to quite a bit of money - anything from a few thousand dollars with discount brokers to 6% in commissions with full-service agents. That's a substantial sum of money to be paying for something you could very well do on your own. Prepare Your Property Like A Pro And Boost Profits The housing market is hot, and you've decided to list your home. But what, if any, improvements should you tackle before selling? Should you just leave it all to the new homeowner?There are two ways to look at pre-sale home improvements. Understanding the Escrow (Closing) Process 1. What is an escrow?Escrow is defined as a process where parties deposit instructions and funds with a "disinterested" third party until conditions of the instructions are met. San Antonio Texas Real Estate The San Antonio, Texas real estate market is still going strong even after several years of growth.San Antonio ranks as one of the most affordable cities in the nation to purchase a new home. Should I Invest in Real Estate While Running an Internet Business? Of course you should. I practice this for quite a while and I never looked back. Escrow Accounts - Are You Paying Too Much? Money in escrow is "dead money". It doesn't earn interest for you and it doesn't reduce your mortgage interest payments. Property for Sale in Bulgaria - Emerging Property Markets 1 The latest investment property headline is this: Popular and well trodden markets such as France and Spain are out, Bansko is in.Where?Bansko, Bulgaria. Where To Start In Looking For A Central Illinois Realtor Central Illinois is an excellent location for families and businesses. Property values and local economies are growing constantly and the wide range of available properties is impressive. How Do I Implement The Lease Purchase Plan? Well, as we have discussed in previous newsletters first you have to set up goals for yourself, both long term and short term. Don't forget these goals define how your business is run. How to Decrease the Value of Your Own House Owning a house is part of the American Dream. Depending on where you live in the US - home ownership can be around 70%. Home Inspections or Home Warranty? Homebuyers are a curious lot. They routinely ask thought-provoking questions. How to Sell Your House by Lease Options Many people buy a house then have to move within a few years, due to divorce, relocation or financial difficulties. Without any equity though, it can be nearly impossible to find buyers and you still have realtor fees to contend with. How To Start Investing For Financial Independence, Part 2 Last week, we started a multi-part series about how to go from being a beginning investor to being "financially independent" in a steady and predictable way. Many, many people want to overly complicate this process so let's briefly, let's recap that discussion. How Real Estate Investors Use Mortgage Note To Purchase Properties Many of you may not be aware of the various ways notes can be used. The average person's understanding about notes is that people create them because they are desperate to sell a property. How to Buy a Property in Bulgaria The CostAlthough the property prices in Bulgaria are quite low compared to the other European countries, there is still a wide variety of prices depending on the property type and location (as a rule the properties in Sofia and at the Black Sea are more expensive). The first thing you will need to figure out is how much you can afford to spend and thereafter to determine the price range for your purchase. The Secret Jewel in the Mediterranean Crown Since the Northern Cypriots famously voted 'yes' to the UN backed Annan plan for the peaceful reunification of Cyprus in 2004 the world has awoken to the secret and hidden beauty of this untouched jewel in the Mediterranean crown. Those open-minded and individual thinkers seeking elegant living, unrivalled Mediterranean-region investment property opportunities or their own hideaway are today embracing Northern Cyprus.
|
 Home  Contact
|
| Real Estate Information © 2006 |
