Why invest in real estate?
There are several different places where you can stick your money rather than keeping under your pillow. Who all aspire to get rich quick, concerned about earning decent returns and wanted to fill up their retirement bucket, real estate investing serve as an ideal investment for all those.
The fundamental four Fs of real estate:
The Tripping Point
Prices begin to fall, compensating for the over-building and high-prices. Foreclosures begin rising, as homeowners cannot sell due to owing more than their home is worth.
Prices are at an all-time high, inventory is down, multiple offers are common, even above asking price
Confidence among home buyers improves, leading to more sales, decreasing inventory, and higher prices.
Prices bottom out, Causing investors to start purchasing much of the excess inventory. Deals are plentiful and cash flow is at an all-time high.
Prices continue to fall, foreclosures flood the market. People are fearful of buying, causing even more inventory and driving prices down.