The Great Real Estate Bubble Quiz
You hear it asked on the radio, in the newspapers and on TV.
"Are we experiencing a value bubble in real estate and is it
ready to burst?"
Do you have an answer for that question? Do you have a
guess?
Yes, I know the so called experts are lining up on both
sides of the question. But what about you? You're living
right in the middle of the action. You can judge what's
happening in your city - your neighborhood.
Are property owners going to be safe or sorry?
To help you form an opinion of the current state of the
real estate market we have created the...
GREAT REAL ESTATE BUBBLE QUIZ...
Everyone gets a passing grade and no homework is required,
so put your thinking cap on and jump in...
True False Question
___ ___ Boston Real Estate values are up 90% in the last six years?
___ ___ San Francisco real estate values are up 90% in the last six years?
___ ___ Denver real estate values are up 90% in the last six years?
___ ___ The price of the average home in New York was $50,000 in 1975 and is $325,000 today..a gain of 550%?
___ ___ The average home price in Los Angeles was $50,000 in 1975. After a gain of 500% it sells today for $300,000?
___ ___ A 6,000 sq ft home in Greenwich, CT. worth $500,000 in 1987 sells today for $4-million?
___ ___ Fannie Mae, the largest buyer of mortgages in the US, issued a report warning that the probability of a housing bust has risen sharply in certain parts of the country.
I bet you scored 100% and earned your "Doctorate of
Bubblology".
OK, why is Fannie Mae so glum? They point to loose (We
would say CRAZY) lending practices, like interest only
loans and the increase in loan approvals that are not
backed by full documentation of the borrower's income and
assets.
We imagine a borrower's conversation with a lender today
goes something like this:
Borrower: "Will you give me a quarter of a million
dollar mortgage loan."
Lender: "Can you pay it back?"
Borrower: "Probably."
Lender: "Loan approved!"
Now you may be thinking that skyrocketing values are
in an isolated number of big cities, right? That's
true, but those cities are our major commerce centers.
When things go bad there the negative effect ripples
across the country.
Here's the bottom line: Our economy is always blowing
bubbles. Some burst and some don't.
Only time will tell about this one.
Mark Walters is an investor-entrepreneur helping other
investors from his Web pages at
http://www.Lease-Option-Sub2.com
MORE RESOURCES:
 |
|
|
RELATED ARTICLES
Searching For Maui Beachfront Houses?
Who wouldn't want to move into a Maui beachfront house?
From the custom architectural jobs done on many Maui homes,
to the beautiful beaches and other natural attractions in
Maui, you're bound to find something you will love about
Maui beachfront houses. However, like any home buying
process, you'll need to make sure several things are in
order before you make your move into your new Maui
beachfront house.
Should You Use a Property Management Company or Manage Your Real Estate Investment in Florida?
When considering investment properties, first of all, it must be determined that it is profitable and a good idea to purchase rental properties. Let's talk about this aspect.
To Buy or Not to Buy
Purchasing a home is a major emotional and financial decision. Often times, people want to buy a home; however, emotionally cannot afford to commit to the home-buying process.
Home Staging: How to Make Your Tract Home Stand Out in the Crowd
Home sellers who wish to market their property in development neighborhoods face tough challenges. All the houses look similar.
How To Find An Experienced Monticello Illinois Realtor
Finding a professional Monticello Realtor in Illinois is the
best way to find the perfect property or home. A licensed
realtor can assist you in locating the type of property you
want in the price range you desire.
Bubble, Bubble, Toil and Trouble?
We are selling our house. We have lived here for 15 years, the longest I have ever lived anywhere; of the places since I left my parents' home I think my previous best was three years.
Home Warranties: Are They Too Good To Be True?
What is a 'Home Warranty?'A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them.
The Listing Agents Role in Selling Your California Home
Advertising to the "Public"Every home seller likes to be assured that their listing agent and or their real estate company will run ads featuring their home. Newspaper ads range from color photo ads to lots of listings reflected on a page with primarily only copy.
Cheap Homes For Sale In Great Towns
Good Homes Under $50,000?
My wife Ana and I found cheap homes for sale all over the country during a seven-week drive, and we even bought one along the way. It was in a pretty little town in the mountains of western Montana, and it cost us $17,500.
Selling Houses: Cutting Edge Design Tips for Selling
In this article, you're going to discover new techniques for marketing houses, and you'll find that these fresh, new interior design ideas will help sell your home faster, and for a higher price than the competition!Buyers' physical senses respond to a home's design, and what a buyer feels is based upon their psychological reactions to sight, hearing, smell, touch, and even taste. Design Psychology employs new strategies in interior design to entice buyers.
Important Information For Condo Buyers
Here is a step by step guide for buyers looking to buy a condo in any area. These are important tactics to make a solid and accurate judgement on the property you're looking to purchase.
Questions Investors Should Ask When Buying and Selling Investment Property
If you're a real estate investor, here are several questions to consider when looking at investment properties. Providing sound answers to these questions will greatly increase your profits:Why do homeowners sell for bargain prices?There are many factors that can prevent owners from being able to maintain their homes.
Is a Vacation Home Right for You?
Many of us dream about owning the vacation home in the Mountains, or on the Lake or Ocean. A place where one can retreat periodically from the hustle-bustle of everyday life.
Unravelling The Real Estate Buying Process in Canada
If you're a foreign national thinking about investing in the real estate market in Canada here's a run down of the typical buying process you should expect to encounter together with a general explanation of mortgages available to assist with the purchase.First things first though, you have to find your ideal property of course!But let's assume you've done that with the help of a good estate agent and you're ready to move forward with an offer.
U.S. Real Estate Sought By Foreign Investors Due to a Weaker Dollar
The weak US dollar has been good news for real estate. Taking advantage of the favorable conversion rates, foreign investors are eagerly picking up real estate in major cities across the US.
Eight Out of Ten Millionaires Surveyed Made their Fortune in Real Estate - How?
Consider the statistic in the title for a moment.8/10 millionaires surveyed found their wealth in Real Estate.
You Wanna Get High With Me?
Being a home inspector is great. It's fun, it's interesting, and I get to meet wonderful people.
Selling Houses Fast: Basics of Design & Color Psychology
Fixing up houses to ready them for sale includes a design plan for needed changes. Save money on transformation costs by choosing design details right the first time.
Miami Property Booming for Foreign Investors
Miami tourism is growing and so is the Miami property market. Dubbed the New Manhattan by the US property media.
The Bubble Effect
Turn on the TV at almost any time day or night and you will find news and talk shows informing us that there is a Real Estate bubble. What is a "bubble" and how do they know? The simple principle of what goes up must come down is being applied in general thought now and many in the public are starting to buy it.
|