How Will I Know When the Dollar Collapses What Happens to Real Estate
You’ve probably heard this before, but allow me to repeat it: If dollar crashes and takes a massive dump on property values, then the property market will crash with it. What occurs is that the huge wealth accumulated during the boom years has abruptly wiped out when the bubble pops. So many people bought properties during the last ten years with the hopes that they would go up in value. When the bubble popped, they dropped all their gains.
This is the painful truth. Individuals who held onto their possessions were unlucky. It’s not that they did not know the laws of supply and demand. The difficulty was that they had been expecting property values to keep going up, and when they hit rock bottom, they began to panic. Real estate is a very volatile market.
But if the dollar collapses what happens to property? First off, your cash flows dry up. If you have property in foreclosure, you’re out of luck. Banks will foreclose on your property and you will lose all of your cash. If you have equity in your property, then you have some upside. If you can find some equity financing together to get back your house, then you have some upside too.
You just need to hang on for a little while longer. If there is no marketplace, then you might end up in a position where you must sell your house and live on the money you made. I don’t know about you, but that’s not a position I want to be in for long. Fortunately, the market has bottomed out and the government has stepped in to stop any more property losses.
However, it’s impossible to predict the future of the real estate market. As soon as you find the recent sales, you may be inclined to believe that the worst is over and the industry is on its way upward. Well, wait a minute. If the sales were lower than normal, how can the market be back up?
You see, there are many factors that go into the movement of prices. It’s impossible to say whether the housing market will fall further or not. Having said that, you do need to have a plan B, C, D and E prepared.
If the dollar does collapse, the first thing will happen is that you will need to adjust your expectations. Right now most people are holding onto their dollars and they will not invest additional money into the market before the dollar bounces back. If that happens it is not a guarantee that the market will rebound. At best it takes time.
In addition to making certain you have a plan B, C, D and E for each contingency, you also need to make sure that you’re ready to live in a world where you might need to sell your real estate regardless of what happens. In times like these there aren’t lots of buyers out there looking for first time home buyers. There will also be plenty of distressed properties you will have to purchase so as to stay in business. You might need to accept that you have to become an owner with a capital lease.
Now many people that are concerned about this question wonder if they ought to retain any property agents once the market takes a nose dive. Well, while there’s certainly nothing wrong with having an agent, you might want to search for somebody who’s more conducive to today’s real estate market. Many agents nowadays have jumped on the bandwagon to get people in their homes and they aren’t very good at their jobs. They are making all kinds of promises like they will fix a home on the market, sell a house fast, etc.. The truth is that 99% of the people you speak to won’t ever see that kind of progress from an agent.
One of the keys to becoming a successful real estate agent is to be very persistent. You can call around to different families to determine if anyone is searching for a house. You can walk the streets and look at houses for sale. You can interview local real estate professionals. You can interview local vendors to see if they’re comfortable selling a home in the current market.
When you ask the question how will I know when the market is over? Remember the smart investor always looks for the upside. So when the market is in trouble most folks will begin pulling out of their property investments. Those who are smart are selling before the market has truly crumbled, but those that are wise will hold on and wait until the market bounces back. Needless to say, when we’re talking about how will I know when the dollar collapses what happens to property it means you will have to wait for quite some time before prices come back up.