The New Real Estate Bubble: Avoid Being a Victim
We may still be in the initial recovery phase at the start of a new upward real estate cycle and the best growth may still be to come but how can you safely invest in real estate whether it is just a new residence, a multifamily apartment building or a portfolio of rentals and avoid getting caught out like so many when the last bubble burst? Based upon historical housing cycles we can anticipate a 12 to 15 year real estate boom once we are officially out of the recovery zone on a nationwide level (which is expected to happen by next year). However, it is inevitable that another bubble ad correction will occur after that. That means plenty of time to build wealth and enjoy an incredible income for real estate investing over the next decade. It also means that real estate investors need to be marking their calendars and have a strategy for maximum profit now, while shielding them from potential losses later. Property owners will be wise to ensure that they have paid down debt and have a significant amount of equity when the next bubble does burst so that they have plenty of flexibility in being able to sell if they need to. While there are no real losses until you sell and those with rental properties should be able to ride out fluctuations as long as they see them coming it could also be wise to maintain a few extra properties which can be cashed out at the peak of the cycle to provide additional cash to make great acquisitions at the next bottom in order to rapidly expand their wealth. Of course no real estate investor wants to take a break so when things start to go south look for real estate investment opportunities which will remain insulated for longer and focus on building strategic partnerships for picking up masses of distressed homes when it bottoms out.
How can you profit from the new real estate boom without becoming a victim of it?