As many know, Las Vegas has seen more than its fair share of foreclosures and taken a wrap for the outcome of the mortgage industry. More and more sources are suggesting that investors are taking the hardest hit by the adjustment in the market. When the boom of 2003 occurred a lot of people made a lot of money. Like with any boom, people followed the trend and jumped in because they saw so many doing so well. Investors gobbled up the available housing stimulating the appreciation even more. Well, those on the back end of the run financed their homes any way they could. Some ended up with 3 or more mortgages.
Then the news of a "market adjustment" hit the waves and the market slowed. Inventories increased and subsequently, prices have dropped slightly. These home owners couldn't sell without taking a loss and couldn't handle the payments of so many mortgages. So, they defaulted.
There is a great moral here. About 2 years ago I was talking with a very successful investor. As a Realtor, I asked if he was considering buying more homes for his portfolio. He said he was watching the trends and that now was not the time to buy. In fact, he had emptied his portfolio. He could smell the greed of too many and anticipated the fear of when the market topped out. He said he would hold off a bit and let the market cool to see what would happen next. He said that the time to buy is before a boom ever occurs. It's important to build a portfolio based on solid future forecasts.
In fact, as the stock market has come off its record highs with many in panic he has done very well. He enjoys moving against the grain and anticipating the oscilations in the market.
Another investor I talked with recently was excited about his success in the stock market as well. As it has dropped he has been very fortunate. He claims that greed and fear drive the markets. That may be obvious to many. But, what those many may not understand is that they need to work with that greed and fear and be patient in order to make the buck.
My next door neighbor bought his house at the absolute peak of the market. He based his decision off of poor news and no understanding for the market. He can barely keep the home rented, let alone resell it.
How does this relate to investors in Las Vegas? If you plan to make a buck investing in real estate here it's key to find an expert in the field who will help you evaluate the market. Understand where it is and where it is headed over the next few years. Don't get caught with too many properties in a slow market and don't get caught without when the market takes off. Buying the home at the right time will make or break you.
There are currently great ways to pick up properties in anticipation of the next positive trend. There are markets that are still hot within the valley. There are areas that will pick up and be prime for 2008 or 2009. Will you be in the right place at the right time? Get a hold of a real estate agent who can help you get informed.