Florida Real Estate Bubble
Will it pop?
Some speculators seem to think that the Florida Real Estate Bubble is all the sudden is going to pop. In turn, all of the investors are going to lose millions of dollars and go running for the hills. This is just simply not true. While many other US investing options are going sour, real estate is as safe as ever before. With sky rocketing prices it is no wonder why many big name investors is heading to Florida. To get ahead in this market decisions have to be made on your toes.
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While it is true that Florida investment real estate will certainly cool down at some point it doesn’t appear to be happening anytime soon. While in some cities, such as Los Angeles, they are feeling the backlash of buying homes off interest only loans. In contrast, Florida investment properties are growing in value for more obvious reasons then its western counter parts. Florida is attracting visitors from all over the world for its five star vacation experience. If you visit places like Orlando or Miami you’ll see that the city is working as a whole to bring more visitors in. They are doing everything in their power to promote world wide exposure. When is the last time you heard a hardworking working person say “I’m taking the family to Los Angeles for Vacation?” or after a professional athlete having a great game and say “I’m going to Myrtle Beach!” Florida has been a wonderful vacation spot for decades. This factor alone should conclude to you, the future investor, this market is not going to disappear.
I remember the first six months after Florida real estate started rising I would hear “It won’t last another year” and “I’d like to see the investor’s face this time next year when he can’t sell that property for what he bought it for”. The truth is there are money negative people out there. There are also many more people that feel the world is designed to keep them down and believe it will always punish them if they take a chance on anything. Remember though, to make high amounts of money you have to take risks and that means you could lose money, it shows itself as a big game. What I find funny is the investors almost always end up on top and when they do take a loss it is usually small in comparison to how much they have gained.
So what is the key not to get burned by any real estate bubble? Smart investing; as long as you make educated decisions you will be far less likely to suffer the fate of the remorseful investor. Think of it as a game of poker, if you know only one card will beat you and the chances are slim to none the other person has it - is it worth going all in? It is the same in Florida real estate, if you have a great developer that has a history of successful profitable developments. In addition, if they have a management company that is second to none it is usually a good idea to invest in that property.
There are preconstruction and investment real estate developments opening up all over the US. The individuals that are scared to invest will never move up the ladder. There is risk in every industry. The difference in this industry is that you are the boss and you make the rules. As long as you stay current in the market there is always going to be investment opportunities for you. Remember in the eighties hearing everyone complains that the stock market was way down and everyone was selling all their shares? Smart investors buy low and sell high, not the other way around. When the market is low the investors buy up as much as then can and when it goes up they sell. So do your research and invest while the prices are low. This market is booming and shows a promise of long standing.
Don’t worry about the Florida real estate bubble popping anytime soon. Big time developers and investors have researched the market. Investment brokers that are in the market will keep an eye on them like a fox. These same people will also keep an eye out for any irregular behavior. I remember a few years back a client of mine telling me the following bit of information “Burger King didn’t make it big by overly researching the market and location for their shops - They just waited for McDonalds to put up a shop and then opened a Burger King across the street”. This might seem a little unethical but it worked. To move ahead in this business you have to step over some of your competition.
If anyone has a specific question about the Florida real estate bubble and my thoughts on it feel free to send me an email or give me a call. I have been heavily involved in the Florida investment real estate market for a decade and I am very knowledgeable about its turns and twists, if any exist.
Florida Investment
Properties
"These are our #1 picks for real estate investment
projects and developments"
Do you have an question for one of our Investment
real estate agents? Feel free to call 1-877-923-7370
or
freeinfo@yaerd.org
Have you tried asking your investment real estate
question in our NEW Investment
Real Estate Forum?
For the best real estate investing advice
tips and information feel free to contact one of our
experts.
People can not believe it
This is probably the largest factor when people talk about the Florida (i.e. Orlando, Miami, and Ft. Lauderdale) investment real estate bubble popping. People just can not believe it is going so well. It is natural for people to think negatively when something is doing well. Although, the Florida investment market has many large corporations spending a lot of money estimating how long this market will continue to grow. There are many factors to look at when you are guessing how long a market has for growth. The current standing is the experts are predicting at least another five to seven years of steady growth in Florida. From these estimates I can assure you the market is booming and not going to taper off over night.
The profound expert factor
These people take every opportunity to say the exact opposite of the status quo. Trying to make themselves out as intellectuals that think outside box, these people consider themselves experts. These ‘experts’ are not just in the investment real estate industry, they are everywhere. As long as there is a sure thing that is common knowledge there will always be someone saying the opposite in hopes to make a name for themselves. Do not follow every negative you hear. As with every investment, there is risk associated with them; do not let these ‘experts’ delay your opportunity.
Example:
"Although it appears that on average people are living longer, I think in a few decades people's life spans will decrease due to the fact we drink more diary then are bodies were designed to." - A Profound Expert
The truth is. in every industry you have people that are going to say the exact opposite of what's happening. These individuals call themselves gurus in the process; this is just another part of life.
It is not the investors talking
You ever notice that most of the people that give real estate advice do not actually invest in real estate themselves? I always chuckle when someone with no real estate investing experience explains the future of my industry to me. It is always very dramatic with huge twists and unexpected turns. I've been in the real estate investing industry for more then a decade and I have seen very few unexpected turns. Truth is that most of the investors know when to buy and when to sell. On the other hand, it is these weekend warriors that get slammed with the truth months later; when they read about it in the local paper.
In the Florida investment real estate industry the changes are usually slow and avoidable as long as you are with the right brokerage that stays current with the market.
Agents eliminating the competition
If your job is selling investment real estate opportunities to investors are you going to encourage competition into your market? This may result in you getting fewer clients. Real estate agents are very aware that the more agents there are in the business, the less sales they can achieve. Unless you are working for in a firm do not expect accurate real estate advice from these agents.
Look at it this way; if you are "friends" with a real estate agent he already looks to you as a lead. This is how a real estate agent makes his living. If you get into the real estate industry you (and your friends) are no longer leads, they are actually competition. If you become an agent in the real estate, friends in the same market are no longer friends; but rather they are competition. This is a very competitive market and is only successful to those who can put in the hard work needed.
Investors eliminating the competition
Now imagine you're a real estate investor buying preconstruction real estate opportunities in Florida. It is becoming harder and harder because of all the new investors entering the market. Do you really want to start telling other people that Florida investment real estate properties are very profitable right now? The answer is no; almost every serious investor I have met keeps their investment opportunities to themselves, unless they profit from it. Since a high rate of competition exists in this market the only way to get ahead is to keep to yourself.
Investors are business people first and foremost. If you're not paying them for their advice chances are it is not solid advice. I remember investors that were very willing to give out super secret stock tips as long as by you investing in the stock made their shares go up. I am quite the opposite, I want you to invest with me but I can not hold you back from taking your decision elsewhere. If you need advice do not hesitate to call or email me with your questions.
Remember, the most profitable advice is always the free advice. Research your investment first, this is the best advice I can give you.
If you ever have a question about a specific preconstruction project or development in this market, particularly the Florida and Las Vegas markets, feel free to contact YAERD at 1-877-923-7370. I am here to give you my honest advice on any project in this market.
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