Is the Bubble Starting to Shrink?

Everyone in real estate investing has been talking about “the bubble”. Is there really a real estate bubble? When will it burst?

A couple of recent articles suggest that maybe the bubble will not burst, but slowly shrink. In the RealEstateJournal an article, Is the Housing Boom Headed For a Soft Landing or a Crash?, quotes Standard & Poor’s Chief Economist David Wyss as saying “The bubble should end with a fizzle, not a bang”. Meanwhile an article in today’s New York Times, Slowing Is Seen in Housing Prices in Hot Markets, suggests that the real estate market may have reached its peak.

This could be good or bad for real estate investors, depending on what properties they are currently holding. People who have properties with little equity could be in trouble. Now is not a time to be over-leveraged. Those with cash to start buying properties could see some good times ahead.

Watch Out for Taxes When Flipping Properties

BankRate.com has an excellent article on potential tax burdens when flipping houses. Many people go into a flipping project thinking that they will not have to pay taxes on the sale and get a surprise at tax time.

Real estate investing does have many tax benefits, but many of these benefits are lost when a house is sold shortly after it was bought.

RealEstateSlowly.com Launched

We are pleased to present RealEstateSlowly.com. We hope to be a source of realistic real estate investment.

This is not a get-rich-quick site. It focuses on building wealth slowly and surely.

We will be adding more content in the coming weeks and months. We hope you get some use out of it.

« Previous Page