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Stick Out The Real Estate Downturn

(Millions of homeowners and amateur investors have been waking up with butterflies in their stomach, hoping to open the morning newspaper to read something positive about their market. )

It hasn’t happened and probably will not happen for quite some time. But that doesn’t mean it’s time to panic.

Real estate always appreciates in the long run, so be patient.

Every homeowner is an investor because no one buys a property without thinking about its eventual re-sale value.

Since you have hundreds of thousands of dollars invested in your property(s), you may want a plan to ensure your investment will become lucrative like you originally thought.

Diane Kennedy, a CPA and tax strategist provides useful information in her article, “Three Ways to Survive a Real Estate Downturn,” which was posted on creonline.com that will allow every homeowner sleep with assurance and confidence that their property will be profitable.

“Is it too late for real estate? I've been investing in real estate for twenty-four years, and I've seen the ups and downs of the real estate market. I've made some bad investments, but most of them have turned out great--as long as I was prepared to stay through the bad times.”

Home values and prices have been on a steady decline for about the last year.

The first strategy to survive the housing downturn is to not sell.

“How serious is the problem really? Let's say that the home you live in, your rental property or the property you bought as a ‘fix and flip’ goes down in value. Well, if you weren't planning to sell right away, would it matter? Hang on until the market comes back. Historically, in the bigger picture, a real estate market will always come back.” It may sound too simplistic; “Don’t sell” and that other situations could complicate this, but as long as you can somehow afford the property, do not sell. You will eventually profit from the property, and once values increase again you will not want to sell.

The next strategy is to run your investments like a business. “Remember that real estate is nothing more than a product. If you're good at a business and know how to thoroughly research a product and its market, you can sell toasters or you can sell a house. It's all the same.”

Now, this is one situation where it is simpler to say than it is to do. You have to find a way to make your property seem like it is worth more than it is. Home improvements or landscaping renovations can greatly increase the apparent value of your property even though the house is basically the same. Like with every business, you have to have confidence and when you don’t, you have to appear like you do. If you have to sell a property, make the buyer come to you. Use your business ideas to generate common interest.

And the third strategy to survive the real estate downturn is to keep your eyes on the real goal.

“No matter what type of business or investments you have, you need to have fundamental skills. For me, one of the biggest benefits of investing in real estate is all the great tax loopholes that you get. And, you'll get those loopholes no matter what happens with the market. Are you sure you're getting all the tax loopholes for your investments? How about your business structures? Are they set up correctly, and are you operating them in the best way possible?”

You can profit in any real estate market. All you need is the proper knowledge and confidence. Other people need to think that there is nothing you do not know about the property and industry as a whole. This will allow you to be in charge of any negotiation.

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