The Bubble Effect > NetSparsh - Viral Content you Love & Share

Home
>
Real Estate
>
The Bubble Effect

The Bubble Effect

Turn on the TV at almost any time day or night and you will find news and talk shows informing us that there is a Real Estate bubble. What is a "bubble" and how do they know? The simple principle of what goes up must come down is being applied in general thought now and many in the public are starting to buy it. Let's sit down, think logically and see if there is indeed a bubble or if there is room to grow.

Challenge 1: The "Investors" are driving the market upward and when they leave, everything will crash.

This of course is completely false. Let's start by looking at home loans 5-10 years ago. A person with a decent credit score would have to pass a bunch of hurdles and put down 5-10%. On a $200,000 homes, this meant coming up with $10,000 - $20,000. The Internet was around, but still a mystery to most. Fast forward to today. The Internet is widely used by everyone from the grade school child to the senior citizen. The flow of information is simply amazing and because of this people are being educated quickly. People are no longer limited to just those they personally know. Loans are now easier to get. Someone with decent credit can walk into a home with zero down now.

How many people do you know that pay rent on time? How many of those people have $10,000 or $20,000 or more in their account? Thanks to the recent relaxation of loan qualifications, these people were locked out of owning a home as recent as 5-10 years ago can now walk into a home and enjoy the American dream. You see, it is not solely investors driving the market (many are regular people), but the millions and millions of Americans who can now walk into a home with little to nothing down.

Challenge 2: Don't forget about the Tech market crash.

You can't go far without hearing some so-called expert performing a "remember the Alamo" yell about the tech stock crash years ago. Why is this not relevant? The first reason would be that you can live in a home and everyone needs somewhere to live. A stock is just a piece of paper that you can put in the shredder or in a drawer. If it goes to zero you have nothing. What if a home went to zero? You would still have it to live in and enjoy.

The tech market crashed because you had brick and mortar CEO's and personnel trying to run Internet based companies. You had people with no real knowledge of how to make money on the Internet coming up with all sorts of ridiculous ideas. It was destroyed because the majority of the people running the show were not properly qualified and the people investing did not care. To compare this crash with Real Estate is like comparing the Enron fiasco to why you burnt the tri-tip on your BBQ.

Challenge 3: Interest rates will go up and everything will crash.

Will it now? Rates have not jumped up overnight nor will there. Think about this. Let's say you are looking at a home that will require you carry a mortgage of $200,000. Right now you can get it at 6%, but you wait and tomorrow when you wake up, rates went up and it will now cost you 8% (which is a major jump). The difference? $250 per month. If you bought a home just $20,000 less, your mortgage difference would drop to only $100 per month more. This was a huge jump, but would $250 per month stop everyone from buying? Not even close. It would cause some to lower the amount of house they bought slightly. For most, they still buy.

There are more loans for people with bad credit and low incomes than ever before. These are not some wildly high percentage loans either. The ease of loan approval has created millions of buyers all over the country. I would submit to you that if homes in an area come down and correct a little, it is not because of a "bubble", rather because the homes were overpriced in that area to begin with and/or the area's value decreased. You can find out more about Real Estate by visiting my website, Jake Truman.com.

Jake Truman is a Real Estate & Stock investor and Credit informer. Website: Real Estate. He has published a book on Credit Help, which is available at his website.

In The News:

Real estate may be a safer bet than equities LivemintWhen you meet a financial planner, one advice that you are most likely to receive is to stay away from real estate and instead invest in financial assets (stocks ...

Delhi among fastest growing mkt globally for luxury residential real estate Business StandardNational capital New Delhi has emerged as the 10th fastest growing city globally for luxury residential real estate with a rise of 4.4 per cent in capital value over ...

10 reasons why the Real Estate sector in a slump Morningstar IndiaSentiments among real estate sector's stakeholders have only worsened in the second quarter, reveals a survey by Knight Frank, Federation of Indian Chambers ...

Stock market update: Realty shares dip; Indiabulls Real Estate down 2% Economic TimesThe Nifty Realty index was trading 0.82 per cent down at 264.55 around 10:17 am.

D-Street Buzz: Nifty Realty in red dragged by Indiabulls Real Estate; Maruti jumps 3% MoneycontrolBenchmark indices are trading flat with the Sensex adding 10 points to 37,412 and the Nifty is lower by 15 points to 11,038. Nifty PSU Bank continues to trade ...

As slowdown bites, real estate industry wants a 'stress fund' to help unfinished projects Business TodayAs the slowdown bites, the real estate industry wants the Indian government to be its saviour. Recently, representatives from industry body NAREDCO met the ...

5 emerging trends in residential real estate The Financial ExpressPresently the realty sector is at the cusp of transformation and is set to become much more vibrant & dynamic with policy reforms.

Dedicated team needed to implement technology innovations in real estate sector: Report BusinessLineThere is a need to establish a dedicated team for implementing technology innovations to solve business problems in the real estate sector, according to a ...

Devendra Fadnavis’ Rs 2,200-crore push for Mumbai’s real estate industry The Indian ExpressIndustry captains have justified the sector-specific stimulus arguing that the slowdown and the liquidity freeze was eroding wealth and causing job losses, ...

Om Birla calls for strengthening real estate sector to spur economic growth BusinessLineLok Sabha Speaker Om Birla on Monday asked real estate developers to deliver apartments to home buyers on time without compromising on the quality, while ...

Homebuyers Approach Delhi Court Seeking Prosecution of Real Estate Firm for 'Organised Crime' News18New Delhi: An association of homebuyers has approached a Delhi court seeking prosecution of a real estate company and its officials under the stringent law ...

Prakash Javedekar assures environmental clearance to real estate projects within 60 days Zee BusinessUnion Minister of Environment and Forests Prakash Javadekar has said that his ministry intends to reduce the whole process of environmental clearance to real ...

Weakness in Mumbai luxury real estate to continue in FY20: ICRA Economic TimesMUMBAI: Ratings agency ICRA expects the weakness in the luxury residential real estate in Mumbai to continue in 2019-20 on the back of liquidity pressure ...

Real Estate Investing Has Finally Evolved Thanks to This Innovative Peer-to-Peer Platform FuturismPeerStreet's online peer-to-peer real estate investing platform is disrupting the market and changing they way people invest.

This Company Is Changing the Real Estate Investment Game EntrepreneurThey say the best investment on earth is earth, but more often than not, only the 1 percent — or anyone who has the capability to cough up millions — gets to ...

BitPay Says Crypto Spending on Real Estate to Double in 2019 CoinDeskA luxury condominium complex in Orlando, Florida, is the latest firm to partner with BitPay to provide bitcoin payment processing for real estate transactions.

Survey points to harder times for residential real estate Business TodayThe commercial market, particularly the office market, continues to remain the only ray of hope for the beleaguered industry.

Donald Trump says buying Greenland 'a large real estate deal' MoneycontrolPresident Donald Trump says the idea of buying Greenland from Denmark came up in conversations within his administration and that it's essentially "a large ...

StockBeat: Germany's Top Court Ends Real Estate Managers' Golden Age Investing.comBy Geoffrey Smith. Investing.com -- Has Germany's Constitutional Court just killed the goose that laid the golden egg? Investors in a handful of residential ...

Incomplete projects continue to reel under liquidity crisis LivemintAssess the developer's financial situation before booking an apartment in an under-construction project.Lack of funding to developers will directly affect the ...

The real estate slump may not be over yet LivemintA recovery in the real estate sector, where project stalling rates have spiked, may be as prolonged as the slowdown without a significant price correction.

Air India puts more than 60 real estate assets under the hammer LivemintMUMBAI: Air India Ltd is auctioning more than 60 real estate assets, including some it could not sell at its last auction in April, as the debt-laden national carrier ...

South India beats north in the real estate game: Herere the details Business StandardThe contrast between the state of real estate between North India and South India could not have been more stark. While throwaway land prices, greed and a ...

Tier II and beyond will drive real estate growth: Clicbrics' Rohit Malik Forbes IndiaAfter getting global marquee investors such as Manny Singh and Peter Mann on board, online real estate marketplace Clicbrics now plans to fan across smaller ...

Man throws acid on real estate partner over pending dues Pune MirrorAccused plastered complainant's society with 'defamatory' posters, following a failed land deal in Koregaon Bhima after the 2018 riots.

Variety’s Real Estate Section ‘Dirt’ Expands to Stand-Alone Site VarietyVariety's Dirt, the publication's coverage of breaking real estate news, is expanding to its own stand-alone site.

WPT Industrial Real Estate Investment Trust Announces August 2019 Distribution GlobeNewswireTORONTO, Aug. 19, 2019 (GLOBE NEWSWIRE) -- WPT Industrial Real Estate Investment Trust (the “REIT”) (TSX: WIR.U) (OTCQX: WPTIF) announced today ...

Homebuyers Entitled To An Additional Remedy Against Builders - Real Estate and Construction - India Mondaq News AlertsAmounts raised from homebuyers contribute significantly to the construction of the real estate projects and hence it is necessary to treat homebuyers as financial ...

Allianz Real Estate to invest $150 million in office platform managed by Godrej LivemintMumbai: Allianz Real Estate, part of Munich-based Allianz SE, said on Tuesday it has committed $150 million to an office development platform managed by ...

RERA is beneficial for buyers, has changed the dynamics of real estate in India: Li Qiongjia The Financial ExpressIn an exclusive interview, Li Qiongjia, Director, Risland (North India), talks about the Indian real estate market and shares his business outlook.

Finance minister meets real estate developers to discuss revival plans Economic TimesThe Minister of State - Finance and Minister of Housing and Urban Affairs, along with government officials, also attended the two-hour meeting.

Indiabulls Real Estate posts Rs 119.36 cr Q1 loss; to sell commercial assets for up to Rs 4,800 cr MoneycontrolIndiabulls Real Estate Ltd (IBREL) on August 14 reported a consolidated net loss of Rs 119.36 crore for the quarter ended June and announced it will sell ...

Second Quarter Winners Announced at Zephyr Real Estate GlobeNewswireSAN FRANCISCO, Aug. 19, 2019 (GLOBE NEWSWIRE) -- Zephyr Real Estate just announced its top producer sales awards for the second quarter. Highest ...

Toronto Real Estate Investor Says Buyers Want Security—Physical and Financial—Above All Else Mansion GlobalWhen David Hofstedter, president and CEO of Davpart Inc., unveiled plans earlier this year to turn the Maclean Publishing Co./Maclean-Hunter Building in ...

Western Pa. Real Estate Continues on Its Upward Climb PRNewswirePITTSBURGH, Aug. 20, 2019 /PRNewswire/ -- Western Pa. real estate is on an upward curve, according to West Penn Multi-List, Inc. and its monthly residential ...

Fix Real Estate Mess To House Growth The New Indian ExpressThe spectre represents an economic and systemic risk—the buyer without an asset and the builder with an unfinished project.

Real Estate: Real estate investments in Romania reach EUR 410 million in H1 2019 ACTmediaThe investment volume in H1 2019 amounted to almost EUR 410 million, a 6 percent increase compared to the similar period of last year, when the figure for ...

De-risking exercise: Piramal reduces exposure to residential real estate Business StandardRead more about De-risking exercise: Piramal reduces exposure to residential real estate on Business Standard. Piramal's exposure to Lodha has reduced to ...

Indias real estate sector on growth trajectory: CREDAI-CBRE report Business StandardRead more about India's real estate sector on growth trajectory: CREDAI-CBRE report on Business Standard. By 2030, residential real estate has the potential to ...

Hyderabad receives over Rs 10k crore investments in real estate sector in 4 years: JLL MoneycontrolHyderabad has attracted approximately Rs 10,100 crore worth of investments in real estate sector since the beginning of 2015 till the first half of 2019 as against ...

Real estate startup Clicbrics raises $3 million MoneycontrolReal estate startup Clicbrics has raised $3 million in a round led by Manny Singh of Kavi Fund, Peter Mann, fund manager at Gluskin Sheff, besides a bunch of ...

Indiabulls Real Estate Aims To Be Debt Free This Fiscal BloombergQuintIndiabulls Real Estate Ltd. aims to be debt free in the ongoing financial year by selling stakes in its various businesses. The company will sell stakes in ...

Japan's Softbank eyes Punjab's real estate sector for investment YourStoryJapan's Softbank Group on Tuesday evinced interest to invest in Punjab's real estate sector, with a focus on student housing, through OYO. The Indian hotel ...

More Blackstone joint ventures to hit real estate investment trust market Business StandardAfter the public issue of the real estate investment trust (Reit) from Embassy Office Parks, a joint venture (JVs) between Blackstone and Embassy, other ...

Stock market update: Realty shares mixed; Indiabulls Real Estate jumps 5% Economic TimesThe Nifty Realty index was trading 0.23 per cent up at 266.25 around 10:18 am.

How Synthetic Data Fuels Real Results for Commercial Real Estate Analysis PropmodoData is the fuel that drives the modern economy. This means that businesses across sectors demand ever more data to train the neural networks that power ...

Spend ₹25,000 to have your real estate firm’s CEO changed Fortune IndiaLast week, the Supreme Court held that homebuyers were at par with any financial creditors and therefore, can initiate bankruptcy proceedings against a real ...

Mid-income realty demand unlikely to look up: Real estate developers Economic TimesDevelopers expect better sentiment in affordable segment but high prices are a hurdle in mid-income segment.

GST rate change to boost real estate sector in offing, but will it benefit customers? FirstpostGoods and *Service* Tax (GST) is levied on the sale price of the goods by the supplier; When ITC is allowed for set-off against payment of GST, then the amount of ...

Lovell Minnick agrees to acquire majority stake in Inside Real Estate PE HubLovell Minnick Partners agreed to acquire a majority stake in Inside Real Estate, a SaaS platform for the residential real estate market. Financial terms of the deal ...

Article 370: Jammu & Kashmir real estate market may take time to pick up pace Business TodayIndian real estate developers are in distress already; they are unlikely to venture beyond key cities.

Approach life insurance and real estate with same lens Deccan HeraldThe relationship between Life insurance and real estate investments can be best described as the Thai expression “same same, but different”. In India, the ...

Article 35A scrapped: Can outsiders now invest in J&K real estate? LivemintArticle 35A gave J&K government the right to decide who qualifies as a permanent resident of the state.Only these individuals were allowed to acquire or own ...

Secretary of Defense honors Texas real estate team with Employer Support Freedom Award PRNewswireSAN ANTONIO, Aug. 20, 2019 /PRNewswire/ -- The Levi Rodgers Real Estate Group is one of 15 recipients of the 2019 Secretary of Defense Employer Support ...

Realty firms likely to face liquidity crunch on NBFC woes: Fitch Economic TimesMumbai: Indian-based real-estate developers face increased liquidity risk as nonbanking financial institutions hold back on lending to the sector, Fitch Ratings ...

‘I don’t see real estate as an investment now’ LivemintNavi Mumbai-based Balaji Gopalaswamy, 41, a manager at a private firm, always thought he had his finances sorted. “I have been working for nearly 14 years, ...

Credai to take up real estate sector concerns with Government soon BusinessLineThe Confederation of Real Estate Developers Associations of India (CREDAI) plans to take up various real estate sector concerns with the Government shortly ...

Fasten Your Seat Belts: Commercial Real Estate Is Taking a Flight to Quality Yahoo FinanceA "flight to quality" doesn't mean jetting off to a tropical resort, it's a strategy that real estate investors are using right now to gain peace of mind. Seasoned CRE ...

No Trump hotel for 'real estate' target Greenland, US president says The Local DenmarkUS President Donald Trump jokingly promised on Monday that he would not build one of his eponymous hotels in Greenland, the day after he confirmed his ...

Real estate investments: Commercial segment emerges winner Business TodayDespite the turbulence in the residential real estate market in many Indian cities, the investment climate, particularly for institutional investments, has remained ...

CBRE's Anshuman Magazine on real estate market, liquidity challenge and more VCCircleAnshuman Magazine has been with real estate services firm CBRE for almost two-and-a-half decades. Over the years, he has not only.

In 'real estate', it's 'survival of the fittest' MoneycontrolRBI has cut down the benchmark repo rate by 35 bps to 5.40 percent, fourth rate cut in a row to boost housing demand and a breather for developers.

Piramal’s real estate fund seeks extension LivemintMumbai: Ajay Piramal-backed Piramal Fund Management has informed investors that it would be extending the tenure of its real estate investment ...

IHFLs real estate exposure a challenge for merger with Lakshmi Vilas Bank Business StandardA public apology issued by Managium Juris LLP, a law firm run by Kislay Pandey for a petition he filed against Indiabulls Housing Finance (IHFL), took the ...

Real estate sector hopes for faster transmission and even sharper cuts The Financial ExpressDevelopers, however, believe that for any pick-up in consumer demand, banks have to bring down rates swiftly.

CFLD among world's most valuable real estate brands China.org.cnChina Fortune Land Development (CFLD) Co. Ltd. is ranked among the world's most valuable real estate brands, according to the London-based business ...

Tough times for real estate sector, need to find solution, says HDFC MD The Financial ExpressKarnad asked builders to focus on reviewing their business policy to make it regulatory compliant and more consumer-centric.

NoBroker.com offers real estate services free of cost in Hyderabad BusinessLineNoBroker.com, a customer-to-customer real estate portal, is offering brokerage-free real estate services in Hyderabad. The platform lists residential as well as ...

Real estate: Centre weighs stress fund, Hardeep Singh Puri to head committee The Financial ExpressSources said the real estate industry flagged an “unrest” on account of liquidity crunch and poor sales, which has created a “fragile situation”.

Real estate attracts $34 billion PE investment since 2014: Report Economic TimesNew Delhi: Indian real estate has attracted USD 34 billion private equity investment since 2014, largely in commercial real estate because of slowdown in ...

Distress knocks on Mumbai’s doors as liquidity crisis hurts real estate sector MoneycontrolThe real estate market in India's financial hub of Mumbai has been severely hit by the liquidity crisis, making it even more vulnerable than the National Capital ...

Home buyers' body wants PSU to complete stuck projects - ET RealEstate ETRealty.comNEW DELHI: A home buyers association has written a letter to the Prime Minister demanding creation of a task force to identify stuck housing projects and ...

India’s real estate slump likely to get worse THE WEEKStakeholders downgraded the outlook for the rest of the year to 'pessimistic'

CenterSquare to acquire real estate debt firm RCG Longview Pensions & InvestmentsReal assets investment boutique CenterSquare Investment Management entered into an agreement to purchase private real estate debt manager RCG ...

Mumbai-based real estate agent held for sexual assault of minor boy at hospital The Indian ExpressThe police said that the 12-year-old boy was sleeping in the passage of the hospital along with his mother when the accused allegedly took him to an isolated ...

Harrison Street raises USD1.6bn for seventh US opportunistic real estate fund Property Funds WorldHarrison Street, an alternative real asset investment firms dedicated to the education, healthcare and storage sectors, has held the final close of the firm's ...

GST boost in real estate on finance ministry’s radar Hindustan TimesThe Union government is planning to incentivise homebuyers and create demand in the sluggish real estate sector with a slew of measures, including a ...

The FBI Raid Of Texas Real Estate Investor Nate Paul ForbesThis week, agents from the Federal Bureau of Investigation descended unannounced on the home and business of Nate Paul, a young Texas real estate ...

The Unprecedented Global Reach And Operating Presence Of Century 21 Real Estate LLC Surpasses 10,000-Office Milestone PRNewswireMADISON, N.J., Aug. 19, 2019 /PRNewswire/ -- With real estate more 'Glocal' than ever, the news announced today by Century 21 Real Estate that its system is ...

Lakewood home sales and other real estate transactions cleveland.comFind the latest home sales and other property transfers for Lakewood, Ohio.

India's real estate potential shines through | India Gulf NewsThe country's growing economy and stable government is attracting NRIs to buy property.

As Real Estate Firms Go Bust, Supreme Court Upholds Homebuyers' Rights NDTV NewsThe Supreme Court upheld the ability of homebuyers to drag property developers into bankruptcy proceedings as several real estate firms are going bust in ...

National real estate meet on August 24-25 The HinduA two-day real estate event — 11th National Association of Realtors (NAR) India Convention and Expo — will be held on August 24-25 at the HICC, Madhapur, ...

Embassy may call off stake-purchase deal with Indiabulls Real Estate Business StandardThe proposed stake-purchase deal between Embassy Property Developments and Indiabulls Real Estate (IBREL) may be called off, it is learnt. According to the ...

ET View: Real estate regulators must do their job Economic TimesThe Supreme Court's cancellation of the registration of real estate major is being touted as a relief for home buyers.

Opinion | Redefinition of affordable housing, GST rate cut can boost real estate LivemintUnder GST rules, sale of a ready-to-move-in residential or commercial property is not considered a supply of a good or *service*.

Indian residential real estate sees slow rise in home prices - Property prices have fallen only slightly Economic TimesSlack demand, huge inventories and stringent regulations have kept home prices low across major Indian cities, says the latest report for the first half of 2019 by ...

'NBFC/HFC lending to real estate players down 48 per cent in FY'19 at Rs 27,000 cr' Economic TimesNBFC and HFC funding was normal during April-September 2018, but due to the crisis, the lending slowed down substantially during the second half of ...

Real estate trust owner gets 51 months for Ponzi scheme delawarebusinessnow.comCarl Chen, the owner of Chenmax Properties, Inc., a Delaware Real Estate Investment Trust, and part-owner of Re/Max Sunvest Realty Co., was sentenced ...

CapitaLand looks to foray into residential and retail real estate Business StandardSingapore-based investor CapitaLand is looking into entering residential and retail real estate in this country, a senior executive said. It had recently acquired ...

Millenials changing real estate consumption pattern in India: Prashant Thakur, Anarock Research Economic TimesConsumption of residential real estate would see a distinct change, with players coming in buying bulk inventory and putting it in a co-living model. That way, the ...

Real estate says rate cut welcome, but not good enough to boost housing The Financial ExpressReal estate needed a deeper rate cut to make a significant difference to both the mid-income and affordable housing segments.

Stock market update: Realty shares up; Indiabulls Real Estate jumps 5% Economic TimesThe Nifty Realty index was trading 0.97 per cent up at 266.05 around 10:15 am.

New residential real estate likely to come with cheaper price tags Business StandardRead more about New residential real estate likely to come with cheaper price tags on Business Standard. If recent deals are anything to go by, land prices ...

Stocks in the news: HDFC Life, Grasim, Indiabulls Real Estate, Future Retail and Coal India Economic TimesNEW DELHI: Nifty futures on the Singapore Exchange were trading 13.50 points, or 0.12 per cent, higher at 10,934, indicating a positive start for Dalal Street.

Indian real estate cos should partner with Israeli counterparts: Benjamin Netanyahu MoneycontrolIsraeli Prime Minister Benjamin Netanyahu on August 6 asked Indian real estate developers to partner with Israeli counterparts to boost productivity and ...

Unending woes of real estate Mumbai MirrorA raft of reformist government measures and an SC verdict have made the industry's travails worse.

Eyeing Greenland, Trump Again Mixes Real Estate With Diplomacy The New York TimesWASHINGTON — Go ahead and file this one under Stories You Probably Didn't Expect to Read About the White House This Week: President Trump has been ...

To invest or not to invest in Dubai residential real estate AMEinfoEveryone is a pundit when it comes to real estate, everyone has an opinion, and for some reason most opinions are that when home prices are reducing it's an ...

The Bubble Effect

Real Estate Real Estate