Intelligently Dealing With Florida Foreclosures For Eventual Success
Intelligently profiting from the fact of Florida foreclosures -- when looking at the Florida real estate market and how investment activities are conducted in it -- is now more possible than ever. It's a fact that Florida has always had a very go-go real estate environment, and the recent increase in foreclosures is an indication of that environment. Fortunately, there have been a few positive signs of late.
That's because many experts look at what's going on at present, in Florida and elsewhere, as a kind of correction in a market in which home prices had been climbing up with no rational basis for doing so backing them up. Much of it could be chalked up to the old issue in Florida land and property sales known as "speculation, " for one.
What this means is that a lot of people have been getting into Florida real estate for years based on the notion that the land or the property they'd be buying would be almost instantly worth a significant amount more than what they'd paid for it. By and large, Florida had been supporting this sort of behavior for years precisely because land and property was generally going upwards in value all the time.
This long-anticipated drop or correction (some financial analysts refer to it as a real bursting of the housing bubble) also contributed to a decline in the broader economy, much of which began to really pick up steam in Florida in late 2008. California and other states saw many buyers looking at homes as investments rather than residences, and they've also seen steep drops in value as a result.
It's still the case these days, though, that those with a strong stomach and good disposition for risk can still make a good profit in Florida, though they will need to understand that rate of return on investment will occur over a much longer time frame than once was the case. Practically any investment these days, though, is going to require a longer view than used to be the case, honestly.
Because of the necessity for taking a longer view of an investment in property in Florida, someone who wishes to intelligently profit from such real estate will have to be willing to sit and use a "purchase and hold" strategy rather than a "purchase and sell" strategy, which never really should have been engaged in in the first place. At the least, many people wouldn't have been caught out like they have been lately.
In this way, not only will an investor gain a much more significant return on the investment, but local property values will stabilize along a much more rational basis than in the past. If that can occur, the rate of Florida foreclosures may begin to decline, finally, and the market will find ready, willing and able buyers with more to back up their buying decisions than just an expectation of immediate huge profits, which was what was going on in the past.
That's because many experts look at what's going on at present, in Florida and elsewhere, as a kind of correction in a market in which home prices had been climbing up with no rational basis for doing so backing them up. Much of it could be chalked up to the old issue in Florida land and property sales known as "speculation, " for one.
What this means is that a lot of people have been getting into Florida real estate for years based on the notion that the land or the property they'd be buying would be almost instantly worth a significant amount more than what they'd paid for it. By and large, Florida had been supporting this sort of behavior for years precisely because land and property was generally going upwards in value all the time.
This long-anticipated drop or correction (some financial analysts refer to it as a real bursting of the housing bubble) also contributed to a decline in the broader economy, much of which began to really pick up steam in Florida in late 2008. California and other states saw many buyers looking at homes as investments rather than residences, and they've also seen steep drops in value as a result.
It's still the case these days, though, that those with a strong stomach and good disposition for risk can still make a good profit in Florida, though they will need to understand that rate of return on investment will occur over a much longer time frame than once was the case. Practically any investment these days, though, is going to require a longer view than used to be the case, honestly.
Because of the necessity for taking a longer view of an investment in property in Florida, someone who wishes to intelligently profit from such real estate will have to be willing to sit and use a "purchase and hold" strategy rather than a "purchase and sell" strategy, which never really should have been engaged in in the first place. At the least, many people wouldn't have been caught out like they have been lately.
In this way, not only will an investor gain a much more significant return on the investment, but local property values will stabilize along a much more rational basis than in the past. If that can occur, the rate of Florida foreclosures may begin to decline, finally, and the market will find ready, willing and able buyers with more to back up their buying decisions than just an expectation of immediate huge profits, which was what was going on in the past.
Source...