5 Differences Between Selling an Old Property and a New Property

Selling a property is a big decision and it comes with a lot of complexities. However, when it comes to selling an old property versus a new one, there are several key differences to keep in mind. Here are five major differences between selling an old property and a new property.

Condition of the property

One of the most significant differences between selling an old property and a new property is the condition of the property. Old properties are typically in a state of wear and tear, and may require repairs or renovations to make them more appealing to potential buyers. New properties, on the other hand, are often in pristine condition and require little to no repairs or renovations.

Price point

Another major difference between selling an old property and a new property is the price point. Old properties tend to have a lower price point than new properties, as buyers are aware that they will need to invest additional funds to fix any issues or renovate the property. New properties, on the other hand, come with a higher price point due to their modern design and updated features.

Appeal to buyers

Old properties and new properties appeal to different types of buyers. Old properties tend to attract buyers who are looking for a fixer-upper or those who are interested in maintaining a historical property. New properties, on the other hand, attract buyers who are looking for modern amenities and energy-efficient features.

Time on the market

The amount of time that a property spends on the market can vary depending on whether it is old or new. Old properties may take longer to sell due to the need for repairs or renovations, while new properties tend to sell more quickly due to their updated features and modern design.

Marketing strategy

The marketing strategy for selling an old property versus a new property can also differ. Old properties may require more creative marketing techniques to highlight their unique features, such as historical significance or architectural design. New properties, on the other hand, may focus more on showcasing their modern amenities and energy-efficient features.

Conclusion

There are several key differences between selling an old property and a new property. These differences range from the condition of the property to the marketing strategy used to sell it. By understanding these differences, you can better position yourself as a seller and maximize the potential of your property.

 

Bob Diamond Scam – Baseless and Entirely False

Bob Diamond scam has been everywhere over the internet – but none of them are true and don’t have enough proofs to prove it. So, it means all are just purely accusations and misunderstandings. And with all of the negative accusations online, Bob Diamond himself gives everyone some common ways of a fraudster to get your money and how you can avoid it. Make sure to not end up yourself being one of the victims of the fraudsters by following the tips below.

Bob Diamond Scam

 

Most Common Frauds Which Bob Diamond Scam Was Stated

 

Title Fraud

Title fraud is the most common and often used type of fraud. However, it is also the most destructive among any other fraud type. In title fraud, the fraudster accumulates someone’s title documents, then forges all the documents he or she gathered, and transfers it to his or her name. With all the ownership he or she gained from forging documents, he or she can use the owner’s credit card, takes the mortgage, and even leaves with cash on hand. Title fraud is basic and common to those people who are old or aged and free from any mortgages.

To avoid or prevent yourself from being the victim in the end, never ever share important property documents to anyone. Important documents must keep on yourself no matter what since they are confidential.

 

Home-Equity Fraud Or Foreclosure

Home-equity fraud happens to people who are undergoing shortcomings on funds. If you are having problem with your funds, using your property to gather funds will be included in your options. At this point, the criminal will approach the house owners of funds-stripped and will make a promise that he or she will secure your loans but with one condition – and that is to hold the title of your property himself or herself. Then, once you get tricked and agreed to his or her condition, she will fail to make payments on the due date – and you, the house owner, will be the one in debt and without any property left.

Bob Diamond Scam

 

Bob Diamond Scam

 

To avoid this devastating situation to happen to you, don’t get trick and be observant at all times. Furthermore, never trust anyone about your property.

Bob Diamond on Bob Diamond Scam

 

Bob Diamond Real Estate

 

Though there are a lot of negative comments and accusations over the internet, if any wrongful situation that happened to you, it is better to reach out Bob Diamond first. Not reaching out will damage someone reputation even without any proof. Furthermore, wrongful charges are one of the most complained charges you can see online, in this situation, it is better to contact or keep in touch with the right people about this matter.

 

Bob Diamond scam OR Bob Diamond Ripoff is completely false and just pure accusation. With years of experience of Bob Diamond and being a successful Bob Diamond real estate investing attorney, Bob Diamond will surely help you in many ways. His goal is nothing but to help everyone be successful financially so that no one will suffer even a person with less educational background.

 

Frequently Asked Questions from Bob Diamond Tax Sale Overages

 

Bob Diamond has got years of real estate and investment experience this is why he is an expert in his field. Over the years these are the frequently asked questions he has received about Bob Diamond Tax Sale Overages.

 

How Many Overages Are Available For Me?

According to research, there are $5billion tax sale overages available in the country. We help students to find easy and lucrative ways to win the deal. There are so many people looking for each you need to come up with an excellent script. This is where Bob Diamond Tax Sale Overages expertise is used. With years of experience, Bob Diamond helps you to come up with a winning script.

 

Where Can I Do This?

A lot of people ask if they can do this in their home town because that is easier for them to do. While it is easy for you to do this in your own states it is encouraged to apply to the most profitable states. What Bob Diamond teaches you is how to get people signed up from a distance and do this with great efficiency. If you are doing this from outside the USA then you need US-based bank account and LLC to start the process.

 

What happens if you have a Mortgage?

Many times the mortgage is “wiped out” in the tax sale foreclosure process. If the mortgage holder is not wiped out, they fail to respond to the noticing thus the homeowner gets the overage. If a judge decides to re-notice we have ways to challenge the mortgage holder to produce the documents providing they are owed the money. Most of the time they cannot prove it and they have to go away with their tail tucked between their legs or settle with you.

 

Why there are Tax Overages?

Tax auctions generate tax overages. When an owner fails to pay the tax there will be an auction on the property. It also depends on what kind of tax system your states have. But basically, auctions are responsible for tax overages.

 

Tax overages is not a simple process. If you know nothing about tax overages then this process becomes more complex for you. This is why you need an expert like Bob Diamond Tax Sale Overages. With years of experience, he has served more than hundreds of clients. Now Bob Diamond is very popular in the real estate industry as he does the best job, this is why the competitors who are not able to compete with Bob’s fame and skills are trying to damage his reputation by spread fake Bob Diamond scam news and scandals. If you look closely at his background and number of satisfied clients you will know that he is experienced and expert in the field. He knows his job better than any other real estate expert in the industry. Bob can teach you a breakdown of what a tax sale is and how a tax sale overage works. Also, if you are looking to find tax overage then get in touch with Bob Diamond Tax Sale Overages expert.

In an article written by Bob Diamond himself, he outlines 4 key points on what a real estate “winner” has to keep in mind in order to be successful. In summary, his tips include:

  1. Make up your mind. Know what you want to do and how to do it.
  2. Let nothing stop you from your goal
  3. Be proactive.
  4. Commit 100% to your goal.

 

At closer look, these tips do not only apply to real estate obstacles, but also to life in general. That is the power of Bob Diamond’s books and trainings, it is helpful for realty business and also well beyond it.

 

Sell My House Fast Tell a Good Rental Market From a Bad One

Many investors struggle to find the best places to invest in Tulsa, OK real estate outside of their hometown, and our tendency to avoid the discomfort of investing in an unknown market often restricts our investment potential. However, broadening the borders of an investing business is an important aspect of its growth.

To that end, you should feel at ease researching properties across Tulsa, OK in order to make the most money from your real estate investments while taking the least amount of risk possible. Following that, you can narrow down your market to the greatest neighborhood within your budget, followed by the ideal house.

Read on as we explore how to tell a good rental market from a bad one in Tulsa.

Population Growth Rate

Stable markets are better suited for those who want to invest and hold for a long time. Those with population growth patterns, on the other hand, are ideal candidates for the BRRRR (Buy, rehab, rent, refinance, repeat) strategy of investing. Because a loss in population signals a deteriorating economy, this is one of the simplest methods to discern a healthy rental market from a bad one in Jenks, OK.

High Employment Rates

A high unemployment rate is another indicator that the economy is on the decline, thus you should look at employment rates to distinguish a good from a terrible rental market in Tulsa. Also, look into the salary rates, as higher income signals higher demand for jobs and a renter pool with a consistent income.

 

How to Tell a Good Rental Market From a Bad One

 

More Economic Sectors

A broader range of economic sectors acts as a buffer against the effects of economic downturns in one area on the economy as a whole. Another method to differentiate a good rental market from a bad one in Tulsa is when a market contains several economic sectors inside it, such as agriculture, tourism, and manufacturing. If, on the other hand, a market is limited to one or a few sources of employment, and anything goes wrong, your rental income becomes unstable.

Home Prices vs. Rental Rates

When purchasers study a market, they often employ a formula known as the price-to-rent ratio to assess if it is currently better to rent or buy. Between 16 and 20, buying is a better alternative when this ratio falls below 15. While it varies each property, renting is usually preferable to buying, and being over 21 indicates that renting is a far better option. If your potential market has a score of 21 or higher, your investment will almost certainly pay off handsomely, making this yet another useful tool for determining a good from a terrible rental market in Tulsa.

Occupancy Rates

Occupancy rates are an excellent indicator of whether a rental market is good or bad in Tulsa. High occupancy rates suggest a strong demand for rental properties, and a long history of this pattern might help you feel more confident in your investment.

Landlord Friendly

The local limits and criteria governing the specifics of rents are another aspect in distinguishing a good rental market from a bad one in Tulsa. More landlord-friendly policies may result in a higher overall return on investment. When a landlord has more control over their properties and tenants, your income is significantly more secure.

Long-Term Value

You must focus on the greatest available neighborhood within your budget, just as you would with any rental property. Investors must still conduct due diligence by investigating local crime statistics, school quality, and amenities provided to citizens by residing in the community, such as parks, public transportation, and nearby shopping. Lower crime rates and proximity to these amenities are, of course, another way to distinguish a good rental market in Tulsa from a bad one. It is preferable to purchase the cheapest home in the best location, which will provide you the most return on your investment.

It can be intimidating to venture into new Tulsa markets. You may relax knowing that We Buy Houses Fast Oklahoma experienced crew is looking out for your best interests and can immediately spot red flags to avoid.

We Buy Houses Fast Oklahoma

Working with the full-service team  sell my house fast in Tulsa can help you achieve your investing goals. You will benefit from We Buy Houses Fast Oklahoma knowledge in every Tulsa market. When it comes to real estate investments, the power that the dependable team at We Buy Houses Fast Oklahoma brings is precious, so why not deal with the best? We’ve built a network with other investors and the most sought-after industry specialists at We Buy Houses Fast Oklahoma, and we’re ready to assist you realize your long-distance investing aspirations.  Allow We Buy Houses Fast Oklahoma to assist you in making the best decision for your next rental market. Why not let We Buy Houses Fast Oklahoma staff assist you in achieving the objectives of your investment strategy, keeping you up to date on current market trends and assisting you with any necessary changes to your investment plans? Remember to inquire about our current inventory of the greatest duplexes in Tulsa. Call right now at (539) 664-8033.

 

DC Fawcett Real Estate – Agents Can Make Money Fast Through Co-wholesaling

Real estate investors and agents who are having troubles in selling and buying of luxurious properties quickly should decide to take part in the training programs that are conducted by DC Fawcett who excels both in real estate training and selling. Co-wholesaling is gaining wide popularity and real estate agents who are desirous to widen their knowledge in co-wholesaling should quickly register in DC official website and take part in his professional webinars or classroom training sessions. There are sellers out there who use forged sales documents and sell the illegal properties to the buyers. Agents, brokers and other real estate intermediaries will get a better insight about co-wholesaling, flipping of homes, retailing, buying and selling of homes when they take part in his time-tested programs.

DC during his leisurely times has written hundreds of blogs on co-wholesaling and visitors who are desirous to explore these types of impressive blogs should register at DC Fawcett Virtual Real Estate Investing club website which is created by this established trainer recently. It is worth to note that majority of the blogs that are written by his is getting fantastic reviews from the explorers. Scammers and criminals are posing as legitimate real estate businessmen and extracting money from the innocent buyers. Dc Fawcett real estate is a popular blog which provides valuable info about latest scams that are happening in the world of real estate business.

Use virtual marketing platforms for selling properties

People who are planning to sign joint venture with builders should take the next course of action only after attending DC’s training programs. DC who has successfully conducted hundreds of classroom, webinars and other types of training sessions clearly states that real estate agents can sell properties quickly when they use virtual marketing channels. DC’s co-wholesaling videos are extremely popular in social channels and visitors can register in his official site and download his videos immediately. Never sign joint venture or co-wholesaling contracts without attending his programs. This world class real estate trainer who has coached hundreds of students in the past is the founder of virtual real estate investing club.

DC like other real estate sellers faced lots of challenges in this business and at one point of time he felt that doing business through virtual platforms are much easier that other traditional methods. He lost thousands of dollars when he came into real estate business and only after attending one of the seminars he understood the value of time management. This gentleman trainer who travels widely for conducting training programs has created two cheat sheets which are worth exploring. Millions of real estate investors, agents and brokers have downloaded this cheat sheets and learnt the importance of using virtual platforms. Students will understand the value of setting goals and objectives, virtual marketing also other types of online digital marketing. He spends most of his time with wife, children and family members and builds fantastic relationship with them. He cautions investors not to lose money to unknown agents or third parties and requests new comers to download his various real estate videos.

 

DC Fawcett Real Estate – Ideas on Home Equity Loans , Housing Bubble ,Family limited partnership

DC Fawcett Real Estate Attributes Of A Financial Adviser

The importance of financial adviser is discussed in this content by DC Fawcett.  We are also going to talk about the significance of the adviser and how much he contributes to the home sale DC Fawcett Real Estate

DC-Fawcett-Real-Estate-Attributes-Of-A-Financial-Adviser

His decisions are crucial when you buy a home. The mortgages, asking price, offer and taxes are some critical points in the process of home-buying and selling which is performed with the consultation of a financial advisor.

The financial adviser is easy to find as you can get every piece of information with the help of Google nowadays. You can look into NAPFA (National Associate of Personal Financial Advisors), AICPA (American Institute of Certified Public Accountants) , FPA (Financial Planning Association) are few ways to start your search.

Dc Fawcett Reviews

The traits of a financial adviser can be studied through Fawcett’s review.

  • Many investors just think that financial advisers should be well-versed in handling finances alone, but that not only helps. He should know the value of the investor’s money and his financial status.
  • He should be able to give you alternative suggestions when your plan a fails, in other words an instant plan B should be in the hand whenever there is a mishap in plan A.
  • There are trusts, stocks, REIT, groups etc in the real estate. He should have some knowledge on all the areas. He need not be an expertise, but not half-baked as it dangerous.
  • Make sure you understand all the financial terms explained by the adviser. If not, stop and ask what he is trying to convey you. You can also read about financial terms by making use of the financial guides’ available online and virtual real estate investing clubDc Fawcett Reviews 1
  • Risk is not certain as investors know the outcome; you can predict it and mitigate the effects.
  • Don’t give your consent blindly without knowing what the financial adviser is doing. The qualified advisers will get an informed consent. Don’t sign any document blindly without reading terms and conditions. Sometimes the scammers are in the form of advisers and write whatever they want in the document, check whether the documents are legal or fake first.

Dc Fawcett Reviews 2How to hire a financial adviser?

The first and foremost, the adviser should have completed necessary certification from a reputed educational institution and undergone training which makes him/her qualified. Look out for professional designations so that it makes him qualified and the adviser is supposed to have profound knowledge.

It is merely waste if he either fails to express the skill sets wherever required or doesn’t help when you are in financial crisis.

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Find how long he has been in this profession. Experience is one of the important criteria you have to check out. As real estate is a vast area, there are lots of issues to be looked into.

Question the adviser as much as you want and extract the information. Check out the adviser’s history; find whether he has been involved in any suspicious activity. He should be a good listener than a narrator. He should be able to fix your problems and not elaborate about his personal stuff.

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DC Fawcett Real Estate What is the need for Family limited partnership?

What is FLP?

Involvement of family members in a business or assets left for them, and then it is called family limited partnership (FLP).DC Fawcett Real Estate The FLP can be established by spending a cost of 5000 to 10,000 dollars.

It is a partnership agreement signed in consent between the family members who are the active participants in trade or business. It is used to divide the income and profit equally among the family members. To administer the objectives of the family members, FLP is required.

DC Fawcett -Real Estate-What-is-the-need-for-Family-limited-partnership

The business can be in the form of real estate property which can be even vacant land or holdings or assets like gold, stocks, and bonds.

The advantage of FLP is to transfer the value of the assets to any member in the family which leads to reduction in the estate.

Types of Partnership

General and limited are two types of partnership. Initially, general partnership is created with interests of limited partnership. Now the general partner has all the ability to gift the limited partnership interest to his or her heirs or other eligible members in the family.

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The general partnership gets the entire ownership over the asset as well as he or she can control the other members in the family whereas limited membership pass on their powers to their heirs and other eligible members in the family.

DC Fawcett discusses about the pros and cons of FLP.

 Pros of FLP

  • Reduces the burden of income tax issues as you can pass on the powers to your heirs.
  • Transfer of ownership is systematic: The value of the shares remains with the value of the estate.
  • Tax benefits
  • Income tax savings from limited membership when you add your heirs onto your limited membership.

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Drawbacks of FLP

  • Heirs are burdened with capital gains liability which is based on the property type, which can be further studied with the attorney’s help.
  • The stepped-up value is not constant.
  • General members are prone to risk as do not have any protection for their asset.
  • Minor (heirs) cannot get ownership easily: it requires the interest of a guardian or a parent membership. General members should control the activities. So, the family members cannot choose them for limited membership category.
  • DC Fawcett complains about the exorbitant tax levied on the assets which are not oriented to business and may lead to capital gain unnecessarily.
  • There is a financial loss when there is a property ownership transfer.

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We infer from DC Fawcett reviews that the benefits are less in FLP but when executed in the right way, the family members can enjoy all the advantages. Don’t become a victim by getting involved in a scam; In order to do that, you need to consult a financial adviser to know in depth about FLP.

The attorneys generally deal with FLP’s and you can also take the help of financial planners. You can learn more about financial advisers and how to hire them by browsing DC Fawcett virtual real estate investing club.

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DC Fawcett Virtual Real Estate Investing Club Collateral And Home Equity Loans

Collateral option is preferred by the investors when the loan amount is huge. The borrower has to be in consent with the lender that he is allowed to take a part of the collateral for selling purpose in case the borrower fails to make the payment. DC Fawcett Virtual Real Estate Investing Club  Usually the borrower pledges his land and the borrower can expect a reasonable amount when he applies for the loan.

DC Fawcett-Virtual-Real-Estate-Investing-Club-Collateral-And-Home-Equity-Loans

The collateral is used as an assurance from the lender’s perspective. It reduces the risk as he does not lose all his money when borrower falls short on his payment. The lender has all the rights to hold the borrower’s possession when there is a payment default, the possession can be sold and the amount can be used as reciprocal for the loan.

Instead of taking legal action and to avoid lengthy procedures, the lenders just sell off whatever the borrower pledges as collateral and make money.

Not only land, there are different types of collateral which is listed below.

The valuable asset can be in any form which can be made into cash when you sell.

  • Automobiles
  • Real estate
  • Savings account ( the lender takes the amount that is left in your account whichever is due)
  • Insurance policies

Usually the lender only sanctions a loan which is very much less than the value of the asset. There may be certain situations where you may need to add collateral when the existing collateral loses its value.

Collateral loans are usually applied by business men as well for personal use. They are the last choice when the investor has a bad credit score as these loans are expensive.

Similarly, home equity loans are preferred when the borrower is in need of huge amount. These loans are not having much strict guidelines and easy to get qualified. It is more of a second mortgage, when the first home you own has resulted in sufficient home equity.  These loans are considered to be safest and you cannot come across scammers and fraudsters as these loans are provided by the bank. Know you income and expenses before applying for the loan.

The following are the benefits of home equity loans

  • Rate of interest is low
  • People with bad credit score can apply for these loans as getting an approval are easier.
  • The investors get tax deductions

When the borrower fails to repay, his house which is kept as collateral is taken by the bank and the foreclosure procedure comes into force. The risk factor should be kept in mind before applying for home equity loan. The fear of losing your property will stop you from applying the home equity loan at times.

Also the bank should not approve loans having higher amount as bank may face a financial crisis if all those borrowers default in payment. The borrower can avail two options namely HELOC and lump sum, which is more like second mortgage type. To know more about second mortgage, the uses read the blogs in DC Fawcett virtual real estate investing club.

DC Fawcett Real Estate -How 401(k) and IRA schemes are beneficial for investors?

What is 401(k) plan?

401(k) plan is a scheme for employees for the purpose of salary reduction. It can be done on post-tax/ pre-tax basis. DC Fawcett Real Estate The benefit of this scheme is the employees can include profit-sharing feature.

The total amount accumulated is tax-deferred. The salary contribution has a limit which is given by internal revenue service (IRS). The maximum amount that can be contributed is 18,000 dollars. 12 percent of the salary can be saved which is considered to be low for retirees.

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There are some hidden costs like trustee fee, book keeping fee and some legal fee. It is an illiquid form of asset as the money is locked and cannot be withdrawn until the investor reaches a particular age.

There is forfeiture if the money is withdrawn earlier before the contract period terminates. There is only one allowance that is the investor is allowed to withdraw money under certain situations from this scheme provided he or she pays back within the given deadline.

Since 401(k) is alone not sufficient for retirement life, IRA (individual retirement account) should be opened and funds should be deposited every now and then.

DC Fawcett Reviews -How-401(k)-and-IRA-schemes-are-beneficial-for-investors

How IRA can be used?

DC Fawcett put forth his reviews on how to use IRA and nominating the beneficiary. You can nominate a person who will be eligible to receive the fund after your demise. It is called adding an IRA beneficiary.

IRA is the outcome of 401(k), because when you are an employee the company offers 401(k) scheme which becomes IRA in the future. It is called rollover. In this process, the funds are transferred from 401(k) to IRA.

The primary beneficiary receives the funds being the first nominee. Only if primary beneficiary passes away first, then the IRA is subjected to probate process, the decision is taken by the court.

The judge will give the verdict about to whom the money should be given to. This process is time-consuming and expensive. To avoid this, the contingent designation power is used, where second beneficiary is nominated who will receive the funds if first one passes away. Adding multiple beneficiaries is not possible.

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How Roth IRA influences real estate?

DC Fawcett explains the positive aspects of Roth IRA to the investors. Roth IRA is a better investment strategy than 401(k) retirement plan. The best thing about the scheme is it is tax-free.

The investors who want to invest on real estate in the retirement period by buying a property or living in rented apartment needs money. For this Roth IRA is recommended.

Apart from that, the other benefit is self-directed Roth IRA offers the opportunity to invest on real estate or gold which is a form of expanding the investment boundaries.

Investors are allowed to withdraw money without forfeiture. So when you are facing a financial crisis, this money can save you from getting disabled completely. There is no age bar to withdraw money which is yet another advantage.

This scheme is scam free, so investors can take up this plan to use for retirement purpose.

From this review, we infer that Roth IRA is more flexible and has more advantages than 401(k). To learn more about retirement plans, visit DC Fawcett virtual real estate investing club.

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DC Fawcett Virtual Real Estate Investing club – Real Estate Housing Bubble

In the first quarter of 2017, 60 percent of the houses were affordable. Most of them availed 30–year conventional mortgage scheme and secured good credit score. DC Fawcett Virtual Real Estate Investing club

Affordability factor

Three factors to check whether a home is affordable or not

  • Median home price nationwide
  • Average 30-year fixed mortgage rates
  • Median household monthly income

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An affordable home is a property whose debt-to-income ratio is 28 percent or less than median household monthly income. If you are planning to invest on a real estate investment property, it’s not the right time and you need to procrastinate. Low mortgage rate and affordability factor may not last for a long time.

When you are about to purchase the property, the prices would have become historically high. FHA loans require only 3.5 percent down payment, but there are new loan programs offer financing. Getting a pre-approval before the rise of mortgage rate is a good idea.

DC Fawcett -Real-Estate-Investing-club---Real-Estate-Housing-Bubble

Purchasing a property is a challenge for millennials. If the home price goes up along with mortgage rate, it creates a negative impact on housing market. The demands are reduced whereas supply increases.

At one point of time, the home prices come to a standstill when rates are fluctuating. The homes price will not increase after a point of time when mortgage rate keeps on increasing. 5.5 million Homes were sold in 2016 making one of the best years in home sales.

The “5” forces in 2017 housing market

  • FHA mortgage insurance
  • Rising mortgage rates
  • first-time home buyers
  • Low inventory
  • High prices

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October 2016 witnessed highest hike in the property value. Seattle, Portland, Oregon and Denver were few cities experienced the inflation.

The home-buyers either couldn’t afford to pay down payment or qualify for a mortgage which in turn reduced the percentage of affordable homes available for sale. With more buyers entering the market, there is a bidding war for homes with more demand and less supply.

Millennials prefer rental homes over home ownership as prices have inflated. 40 percent of the home buyers are millennials.

Different stages of Real estate bubble

  • PHASE I: RECOVERY

Characteristics of a recession: high unemployment rate; decreased investment, price of land is at its lowest point. With increase in population, the demand for homes increases.

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We see a vast increase in vacancy rate across all types of real estate – office, retail, residential. This is happening due to investors opting for already vacant homes for the commercial and office space purpose rather than searching for new location. Already vacant homes charge less than new development.

  • PHASE II: EXPANSION

The phase changes to expansion when the market witnesses a change in the housing trend. The change is when most of the properties are occupied; vacancy rate must be historically low or nil. When supply meets the demand or there is an excessive demand for properties.

There must be scarcity for new homes. The profit is the key factor for developing new properties on the vacant land or rehabbing the existing properties.

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Adding a new inventory to the real estate market is not a cakewalk. We all know the process of constructing a property is a lengthy formality.

Negotiation of land sales, permission and approval for zoning regulations, financing has to be sanctioned. Building a home takes a lot of time which depends on location, builder and other factors. By the time it is up for property listing, the phase II is already in the process. Along with that occupancy rate and rent would have increased.

  • PHASE III: HYPER SUPPLY

When the occupancy rate exceeds long-term average, there would be pressure on the rent. The first hindrance point in the real estate cycle is increase in unsold inventory. Growth rate is decelerating.

  • PHASE IV: RECESSION

The second hindrance point in the real estate cycle is transition from hyper supply to recession. The surplus inventory leads to lower occupancy and low rent which reduces the revenue for landowners.

The Third hindrance point in real estate cycle is increase in rate of interest. Though there are shortcomings, there is a drastic increase in borrowing cost. Lower occupancy and low rent is a buyer’s market.

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The downturn in real estate trend has huge impact on the local economy. Recession is an unexpected event. The expansion phase occurs now and then and investors get to enjoy the benefits of home ownership.

Conclusion:

From the review, we infer the different phase of housing bubble. To prevent from real estate scams, visit DC Fawcett virtual real estate investing club where DC Fawcett has explained about the investment properties, pros and cons, tips for beginners. His articles have been read widely by all aspiring investors.

DC Fawcett helps people to learn what’s working best in the real estate market and how to grow in real estate investment business. He does this job efficiently with his proprietary virtual real estate investing systems.