The top or the bottom end of the market never gets affected adversely. The rich will remain rich and so will the poor remain poor.
Its the middle income families that get the stick each and every time. Its the people who bought investment properties according to their own taste of what a good property should look like. They purchased investment properties as though they were going to live in them. This is the worst approach to investing in Real Estate.
When the market turns, people usually think of downsizing. The guys at the top are never going to downsize to the level below. The one’s that are in the Middle are the ones that end up downsizing because the ones at the bottom have no where to downsize to.
So when the downsizing begins, supply of middle-class homes increases, demand drops (due to lack of affordability and a credit crunch), the people owning those homes begin struggling and as a result the market tanks.
So, the moral of the story is this:
- The market is on its knees
- Become SMART at reading the market
- This is the best time to get into the Real Estate business
The Real Estate Investment Basics course is a great starting point for the ones serious enough to take advantage of this upcoming market opportunity.
Learn more about our courses.
4 thoughts on “How To Make Money From Real Estate When The Market Is Crashing”
But isn’t it also true that when the economy tanks, the lowest income earners are the ones that get laid off work first? If that’s true, then how come they aren’t affected by the economics as you say?
Good observation @LC. When the economy is heading south, the low income earners aren’t always the first ones to lose. Having said that, my comment is more to do with the economics around the real estate bubble, not the economy in general – that’s a much deeper conversation that’s beyond the scope of this article. Also note that when governments announce new housing construction projects, they are mostly aimed at meeting the demands of state housing (low income) or low end, 3-bedroom townhouse type developments – why? Because the bottom end is where the most amount of demand will always be and hence, it makes sense to increase the supply there…
Hey saw this article mentioned on Hosting Foundry just want to comment that i liked it as well 🙂
Thanks Connie…