When there is a crisis (i.e. problem) there is opportunity? In our current economy, there are opportunities in both the stock market and the real estate market. Most of this is due to the current mortgage and credit crisis that has affect the economy of the US and the rest of the world.
Despite the downturn in the global economy, most successful investors in the real estate or the stock market will continue to invest and not take themselves out of the market.
The BIG QUESTION is "WHY do these successful investors continue to invest during a DOOM & GLOOM economy?" There are 2 big reasons investors buy and others get out, one is value and the other is cash flow.
During a DOOM & GLOOM economy, properties can be purchased for less than fifty cents on the dollar and the condition these of properties tend to be in better condition than similar properties purchased during a seller's or balanced real estate market. Overall, investors are buying better properties at better prices, this due to a higher inventory of homes for sale.
The other reason investors purchase properties during these times is because it is much easier to have rental property cash flow. It is during these times that rents will increase, due to a higher demand for rental homes.
When the economy turns around, the market value of homes will grow. Those who buy homes at fifty cents on the dollar when the economy was down and out will see substantial appreciation. The numbers are mind boggling.
For example an investor buys a house for $50,000 and market value is $100,000 in a down and out economy, when the economy turns around in a couple years the property can easily be sold for $100,000. That is 100% return on your investment, assuming there is no need to put money into property.
The example may be simplistic, but it does spell out the potential opportunity there is today's market. If you find a deal, there are investors willing to lend money, so don't despair.
There are lots of opportunities like this in Goose Creek and Hanahan, SC. Every real estate market right now has similar opportunities.
Take the next step, educate yourself.
To learn more or you have additional questions, please contact me:
Matthew J. Naumann
REALTOR®
Exit Realty Charleston Group
Email: matt@exitcharleston.com
(843) 818-9898
"I am never too busy for referrals."
Visit my websites http://www.MattNaumann.com or http://www.HomeBuyersRoadMap.com for FREE information.
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