A lot of people are saying that the real estate business is crashing down. Some say that investing in real estate is like suicide as the inflation on real estate is so high and the market is going to crash. But how true are these claims about the real estate market ? Is this business really in it's doom ?
Let me ask you. Have you heard of a $500,000 house become a $5,000 house ? Not unless everything else is devalued, and then it makes no difference. But everything in real estate is going up. The value of lots, materials, rentals, and almost everything related to this business. Therefore, a total crash in the general market is impossible to happen.
Before we conclude on anything, it is better to get the facts and statistics first. Some so called “financial writers” produce articles just to get the attention of the reading public. They are people who make a low five-figure income putting words on paper. They love exciting doom and gloom headlines.
Real estate is the foundation of all. Wealth, currency, value. It will never go down. It can't happen as everything in real estate is soaring high, unless of course people stop living in houses. People stop looking for places to live, stop pursuing that dream of owning a house, a condominium unit and other real estate acquisitions.
There maybe some factors affecting it like national calamity, earthquakes, terrorist attacks, commodities gets high priced, oil price increases. It may temporarily go down, however, people would reinstate it as fast as they can as everything relies in it. Business transactions has to be closed in offices, conferences, seminars and other business gatherings and all these needs a place to hold. Everything in this world is tied to real estate. If real estate plunged, so would everything else. But it is impossible to happen. The need for real estate arises and it's getting higher.
Let's take for example the condition in Iraq , the war may have destroyed its infrastructures. Buildings may have collapsed because of bombings, offices and commercial centers may have closed down. The financial market has gone down. However, this state is just temporary. More and more people are now investing in their currency, the Dinar. Business minded people are preparing and keeping enough Dinars with the idea in mind that Iraq infrastructures and businesses will start to be recovered once Saddam is executed and the war is over. Why is this so ? These futuristic people are thinking that having enough Dinar will give them an edge. Once the war is over, business will soar up. A lot of people will invest in the real estate business. More and more people would want to buy lands in the country to be turned into living havens, commercial centers and even just for future investments. Once the economy of Iraq booms again, prices of lands will increase significantly. Once you are able to acquire these lands, the higher you will earn from your investment in a few years time as prices will become doubled, tripled and the land appreciation will be expected yearly.
Foreign investors will come and would buy properties in order to earn millions upon millions upon millions once the lands will be developed into business locations. In two, five, ten years, the economy will soar up. The oil may have been one of the reasons for the influx of investors but the need would result in real estate demand. Real estate may slow down a bit at times but crashing down never happens. It never will.
