Miami Real Estate A Good Investment

Miami Real Estate A Good Investment

Miami Real Estate - a​ Good Investment
We all know that buying real estate but especially in​ hot markets like Miami, is​ one of​ the​ biggest personal investments you can make .​
When you are buying in​ a​ competitive market, like the​ Miami real estate market, it's important not to​ allow yourself to​ be pushed or​ cajoled into making a​ fast decision .​
the​ fear of​ loss factor is​ used very effectively by many real estate agents and​ is​ a​ popular ploy in​ the​ hotter markets .​

The first thing you need to​ do is​ to​ understand that the​ market is​ cyclical .​
That is, it​ won't keep going in​ any one direction permanently .​
OK, so over a​ long term of​ 5, 10 or​ more years, there will be a​ definite trend but don't expect a​ year over year equity increase .​

This fact free you from another popular real estate agent strategy.. .​
the buy now because the​ price is​ going up plan .​
Honest agents will show you market profiles that justify the​ asking price of​ any property .​
These profiles should include not only the​ asking the​ selling price also .​
There are agents that make statement like; the​ market will go up 10% this year, or​ that you will make your investment up in​ 2-3 years .​
Now unless they have a​ crystal ball or​ can see into the​ future, these are fluff statements that should raise a​ red flag in​ you mind .​

Never buy real estate and​ base the​ purchase on something happening in​ the​ future .​
if​ it's a​ good deal it's a​ good deal NOW not in​ 10 years .​
a​ lot can happen during this waiting period .​
This doesn't mean that the​ market doesn't get red hot or​ that if​ you don't jump onto something immediately, it​ ends up sold .​
These things do happen .​
But it's important to​ remember that there are other factors at​ work in​ any real estate market but especially evident in​ a​ robust or​ seller market.

These include the​ GREED FACTOR .​
People look back several years and​ then use that information to​ decide that the​ market will continue to​ go up in​ the​ future .​
Previous returns are not indicative of​ future results is​ a​ popular statement on many investments but some people don't seem to​ believe it​ when it​ comes to​ real estate.
Next up is​ the​ GREATER FOOL THEORY .​
This is​ one that even bankers use to​ justify lending to​ some people who can barely qualify .​
the​ theory is​ that once the​ property is​ sold and​ the​ loan closed, the​ increase in​ appreciation will give the​ bank - or​ owner better protection .​
the​ idea is​ that the​ owner can sell it​ for​ more money to​ the​ next person willing to​ pay to​ get into the​ market .​
the​ problem is​ that once again, is​ assumes a​ continued positive appreciation in​ property values .​

People seem to​ forget that it​ wasn't that many years ago that property in​ much of​ Florida was sold off very inexpensively .​
There was little to​ no appreciation in​ many real estate markets throughout the​ country for​ years .​
a​ normal market will return sooner or​ later .​

By buying into the​ hurry up and​ purchase strategy, you run the​ risk of​ buying at​ the​ top of​ any real estate market .​
This is​ especially true however when talking about a​ hot market like Miami Real Estate.
Purchase wisely as​ a​ good investment continues to​ be a​ good investment no matter what the​ market.

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