Is There a Houston Real Estate Bubble?

The real estate bubble refers to the bursting of the real estate market based on economic instability. It is what a lot of consumers worry about prior to investing their money in real estate. Realtors believe that real estate markets cannot crash because of several key factors. The real estate market is based on local or micro-local economies that are more stable than the world economy. They also believe that the real estate market is actually a compilation of local economies that have never been down since the 1960s.

The Houston real estate market has been subject to a lot of “bubble” rumors in recent years. Houston has seen a decline in its job market in the recent years, making Houston quite unpopular among professionals. Although living in Houston is fairly affordable, its lack of professional opportunities, compared to other urban areas, makes it less preferable. This may be one of the reasons behind the Houston real estate bubble. Local realtors, however, believe that the local economy is growing, and real estate sales have not declined significantly. This is accompanied by promising projections of more careers available in the years to come.

Real estate agents believe that the Houston real estate bubble has no basis at all, contending that real estate price appreciation rates may be considered high at almost 4 percent. Desirable neighborhoods in Houston still fetch high prices and may be sold even higher in a few years or when properties are developed further. Houston offers a little bit of everything, which makes it appealing to young families, especially with the insurgence of computer industries that are setting up facilities in Houston. The number of educational institutions in Houston that offer students a competitive edge over other areas also attracts a lot of individuals to Houston. Aside from these, Houston, despite being the fourth most populous city in the United States, has a fairly low crime rate. All these reasons make it quite improbable that the Houston real estate market will crash and never come back.

Real Estate Bubble Burst – A Preview of Things to Come!

The LA Times ran a story on March 4th on the bust of the Shanghai, China, real estate market. In one of the world’s hottest housing markets, the last three years saw a doubling of prices. Things are now so bad now that thousands of real estate offices have closed, many homeowners have loan amounts that are greater than their properties resale value, recent buyers are fighting with developers to rescind their purchases, and banks are awaiting a wave of mortgage defaults.

Morgan Stanley’s chief Asia economist said “Shanghai’s housing slump is only going to worsen and imperil a significant part of the Chinese economy”. About the property now under construction, this same economist said “They’ll remain empty for years!”

The similarities to our hot US bubble markets, makes me believe this is preview of what we are already starting to experience (though at a much slower pace).

The first signs of trouble in our real estate markets were very subtle and only picked up, or acknowledged, by very few real estate professionals. Since mid 2005 the red flags have been quite obvious to even the layperson. Yet, the forever optimistic ‘it’s always a good time to buy’ industry line is embraced by the mass media (they certainly do not want to lose their immense source of real estate advertising revenue) and the naive general public.

In San Diego in particular and most other major metropolitan real estate markets, it’s quite acceptable to acknowledge and embrace the double digit real estate appreciation of the past. Yet, even the thought of depreciation of real estate is looked on with the same disbelief as if a child molester moved in next door.

There is a proven saying in our stock market: “You can never go broke taking a profit.” In many US markets, seasoned investors can still turn a profit. However, if Shanghai’s real estate market is any indication of what awaits the hot US markets…..the window of opportunity is closing very fast!

Real Estate Investment Trusts

Real estate investment trusts (REITs) is an investment trust where many people invest their money in commercial and residential real estate businesses. The trust manages and possesses many commercial properties and mortgages. The trust also invests in other types of real estate. Real estate investment trusts shows the best characteristics of both real estate and stocks.

Real estate investment trust is a company that operates income producing real estate such as apartments, offices, warehouses, shopping centers, and hotels. Though a variety of property types are there, most of the REITs concentrate on any one of the property types only. Those specializing in health care facilities are called the health care REITs. The real estate investment trust was formed in 1960 in order to make large scale income raising investments in real estate, which can be easily accessed by smaller investors. The trust’s main advantage is that it helps a person to select an appropriate share to invest on from a variety of group rather than investing on a single building or management.

Real estate investment trusts are broadly classified into three categories – equity, mortgage and hybrid. The first category involves the ownership and management of income producing real estate. Mortgage real estate investment trusts offers money directly to real estate owners by acquiring loans or mortgage backed securities. The third category not only owns properties but also provide loans to real estate owners and operators.

Real estate investment trusts differ from limited partnerships in many ways. One of the main differences lies in reporting the annual tax information to the investors and another is that there is no minimum investment amount. For a company to become a real estate investment trust, it should share out 90 percent or more of its taxable income to its shareholders once in a year. Once a company is qualified as an REIT, it is allowed to reduce the dividends given to its shareholders.

Atlanta Apartment Rentals

If a tenant comes to terms with what he or she really needs, it should not take more than a few days to complete the rental home search. If the needs are reasonable, like good bathrooms and bedrooms or a nice kitchen and cozy living area, there should hardly be any problem. But tenants with extravagant demands like a four-car garage or the right to keep a couple of poisonous snakes may not find the going too smooth.

Even though some policies may impose an additional charge if you rent your house, see to it that your insurance covers your house as a rental. Take care to have a look at the prevailing rental rules. There are often rules on various things like what rooms in a house may be used for renting or the number of non family members that may live together. By collecting facts on other rentals in the area, make the most of your own house rental.

One rents a house mostly because of a large, steady income. Many people purchase rental houses in areas that constantly attract tenants and rent them for much more than the cost of the mortgage. In most cases a house will rent for a lot more than an apartment. They usually offer more space and are rented by families, professionals or students whose needs are not fulfilled by acquiring smaller spaces.

You can also rent a house for part of the year and use it as a vacation home. There are many who buy shore homes and rent them except for a few weeks of the year. Remember, any tools, supplies and services you purchase for the house can reduce your tax burden.

If a property remains not rented for long, you stand to lose more money. Maintenance of a home rental is also not easy. Painting on a regular basis, taking care of the lawn, removal of snow etc. will demand your attention and cost you a lot of money.

Real Estate Investing Guide-Learn About Real Estate Investing

Real estate investment is a great opportunity to earn profits and generate a cash flow. There is a slight difference between real estate investment and other types of investment. Real estate investment can be categorized as a long-term investment or short-term investment. Good real estate investor has ability to invest in real estate at right time.

Real estate investment requires proper knowledge and concentration to invest in good piece of land. Sometimes heavy investment gives wrong results in the future and sometimes with a small investment you can earn more. Investors should be alert at the time of investment in real estate.

If you’re going to rent your property you should have sufficient knowledge about tenant problems and requirements of tenants. You should be aware of all financial as well as legal requirements for your real estate. Investment goals are the primary factor for real estate investment. Decide your investment goals like what you want to do with your real estate.

Real estate market offers different types of strategies to invest in real estate. You should choose the best strategy as per your needs. Efficient real estate investors are able to make their fortunes in real estate business. People who invest in this business can live comfortably. They don’t have any tension about their survival. They can earn more and more profits with single right time real estate investment

Investment in real estate requires great commercial skills and knowledge like other businesses. Real estate business needs additional risk because sometimes you’re at risk in this business. That’s why a person with a great will power can easily handle this business. Forecasting in real estate investing can spoil your future so don’t overestimate your investment.

Cheap Atlanta Apartments

It isn’t difficult to find many affordable apartment homes spread across Metropolitan Atlanta. You will have to spend depending on your location, work or recreation requirements. Average monthly rent is less than the national average but the apartments still offer consumers more amenities than one would expect.

Since 1991, the total number of housing units authorized in metro Atlanta is the largest in the United States. It is generally observed that used homes often find their true value in the marketplace, while new homes offer attractive amenities and repair costs are usually much less there.

Some of the more affordable rental apartments in Atlanta start range from $399 to $499. Ashton Place at Memorial Drive offers cheap 1, 2 and 3 bedroom flats with rent starting from $455. Cascade Glen has 1, 2 and 3 bedroom flats with rent starting from $499.

Constitution Hill Apartments at Constitution Road offers 1 and 2 bedroom flats where rent starts from $499. Gates Park Crossing Apartments at Peyton Place offers 1 and 2 bedroom flats with rent starting from $440.

Hidden Oaks Apartments at Springdale Road has 1, 2 and 3 bedroom flats for rent where rent starts from $499. Highland Circle Apartments at Northwood Drive offers 1, 2 and 3 bedroom flats and town homes with rent starting from $475. Parke Towne North Apartments at North Cliff Valley Way offers 1, 2 and 3 bedroom flats where rent starts from $435. Regal Heights Apartments at Campbellton Road has nice 1 and 2 bedroom with rent starts from $479. Stone Ridge at Vinings Apartments at Cumberland Club Drive offers inexpensive 1, 2 and 3 bedroom flats and lofts where rent starts from $399.

The Cliffs of Dunwoody Apartments at Roswell Road has 1, 2 and 3 bedroom flats in which rent starts from $495. Valley Oaks Apartments at Johnson Road offers cheap 1, 2 and 3 bedroom flats where rent starts from $422. These apartments offer various amenities like dishwater, mini-blinds, ceiling fans, and more.