One can always make money on property in all market situations. However, it is necessary to learn what strategy you should use and what type of product you should invest in for the different market situations.
In the U.S, prices have fallen by almost 50 percent and it is likely that the U.S. becomes the first country out of the crisis as they entered the crisis first.
A recent example of a one bedroom apartment in Orlando, Florida:
- The property was announced for a quick sale, so-called "Short Sale" for $ 122,000 in December 2007.
- In September 2008 the property was auctioned at the lowest price $ 89,000.
- The property was not sold but instead taken over by the bank, called a Reo property (Real Estate Owned).
- The Bank lowered the price to $ 58,000, but it was sold to an investor who offered $ 49,000 and the bid was accepted.
Why Orlando, Florida? - Real estate prices have fallen to 2004 levels and the average price in Orlando is at $182,000.
- This has led to that the "affordability" index is at 124 percent
- Orlando is expected to be the main place in the U.S. when it comes to increase in jobs between 2007-2012.
- The population has increased by 17 percent over the last 6 years.
- The tourism "capital" in the U.S. mainly thanks to all amusement parks in 2007 that was attended by over 50 million tourists, which creates many jobs.
- 44 percent lower prices on average compared with the peak in 2005.
- Many people move to more central areas in Florida because of weather and climate change.
Cecilia Helland