I believe that you have to have a bubble first before it can bust. Sure you have some specific local markets that will see a CORRECTION or maybe a smaller growth. But a national buble bursting, that is just hype from people with a dog in the fight (I belive that Lord Kiyosaki has a book on how to make money during the impending bust). Learn you local market and adjust accordingly. As for a major bubble bursting, read that fairy tale to your kids at night. It holds just about as much water as the other fairy tales.
Today, there is alot of talk about the coming Real Estate Bubble bursting, even from experienced investors. Robert Kiyosaki even beleives that it is coming soon? What does this mean to investors? Has this happened before in the past 30 years? Should we stop buying? What can we do to prepare and still make money even if the bubble pops? Thank you
Posted by DP (ON) on December 21, 2005 at 08:43:40:
It already burst, some of the high-flying markets are deflating as we speak, while the markets that have been in recession are starting to pick up. That’s the way real estate goes some areas expand while other’s contract.
Has it happened before in the last 30 years? Yes, in the 90s, 80s, 70s… I remember a time not so long ago in my own area when prices were less than half what they are now, every street had 10 houses for sale for months on end, and realtors were working at McDonald’s to make ends meet.
When your local market pops you can always invest in another market that’s booming.