While it comes as a shock to many investors who have a pipe-dream that Miami real estate can be found for pennies on the dollar, well-informed buyers are finding and acquiring solid investments at fair market value, and they can certainly expect their acquisitions to ride the ebb and flow of the real estate cycle upward to see a long term return on their investment.
People who bought real estate in 2006 and 2007 may well have seen their property drop in value between then and now. Real estate NEVER continuously appreciates, contrary to popular belief. (Yes, I acknowledge, there are certainly brief market blips … and we’ve seen quick profits on “flips” from time to time.) Other than that, honestly, NEVER has real estate been viewed as a good short-term investment. For the past couple of years, continuing into 2010-2011, we are experiencing a natural, re-adjustment phase of the real estate cycle. While a typical 10 year span may well reap a 50% return on real estate investments, on average, the market is and will likely continue to have it’s ups and downs… which makes it a cycle.
For generations, we’ve heard the same story, repeatedly: “Buying my home was the BEST investment I ever made”. The purchase of a house though was for the purpose of it being a ‘home’ … not as an ‘investment’. After decades of living and raising a family there, and riding out the ‘cycles’, value appreciated.
As more and more buyers are contacting us, looking to purchase ‘investment property’, I think it’s important to keep it in perspective. Do rely on a TRUSTED Real Estate Advisor … and by all means, use the information they provide you with to make informed decisions. Our buyers, armed with knowledge, facts and a good grasp of the market, are in a position to make stronger, better decisions.
If you are looking to buy or sell real estate, and looking for an experienced Realtor to assist you, you can always reach me or a member of my team at (305) 793-1365 or (305) 632-0164 . (Each are cellular numbers). You are also welcome to send us a message here.