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Yes, indeed! Investment in real estate can be great, and leveraged
purchases are wonderful IF prices appreciate. If prices DEpreciate, a
reverse leverage works against investors so that they can lose much more
than they invested. Simple economics that the investment gurus never
seem to explain. In many markets, real estate isn't appreciating, or
appreciating very slowly. Inventories of new and existing homes are at
or near record highs in many regions. This is a now a market for longer
term investments; for those who can weather the weaker market and hold
on for a while. For months to come and maybe longer, buyers who
purchased with ARMs and little or nothing down have reason to be worried
about real estate investments they hoped to re-sell for quick profits.
As some have noted: the party's over. There are some great buys,
especially in the upper price ranges, and those who can buy and hold may
see this as a time of buying opportuity. Some others who bought when
prices were at their peak, and who are under pressure to sell, are
facing losses. Me
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Re: Real estate bubble could be worse than the dot-com bubble.
