Hey guys,
Its seems all the buzz these days in the real estate market is about this “real estate bubble” that’s beginning to form in the United States. They say its particularly evident in the major cities along the east and west coasts, and in florida. Where I am, in boston, conservative estimates put properties in the area as being at least 14% overvalued. As rates have risen steadily since last June, and as we await yet another decision by the Fed tomorrow (Tuesday) people say its only a matter of when, not if, the bubble pops.
How do you guys feel this pending “pop”, if you will, affects your business as real estate investors? Those of you with flipping businesses, how do you proceed in conditions like this? I’m looking to get into the business, and worried I’m going to buy a property and then watch its market value plummet before I can realize my profit. I was wondering what your take was on it.
Also, given the interest rate environment, how do you think it affects the future feasability of the Subject To method of financing purchases? How are people planning to deal with the likelyhood of more and more due-on-sale clauses being redeemed as rates rise?
Any thoughts on one or both of the topics would be appreciated! No holding back!