The world of Michigan Real Estate Investing has changed dramatically over the past few years as both local and national economic challenges have forced investors to adapt their methods of approaching the business.
While on the surface things may look rather bleak, the ability to boost your net worth FAST has never been greater than right now. Why? Because prices have fallen to all time lows and have set the stage for savvy investors to position themselves to generate unheard of profits in the coming years.
As Michigan goes through a time of change, success as a real estate investor is dependent on two factors. The first is selecting the proper investing strategy and the second is finding funding sources to fuel the growth of your real estate portfolio in spite of the fact that lenders are making it increasingly difficult to secure such loans.
While addressing both is essential, in the interest of time we’ll tackle the first one in this article and save the second for another day. But before setting your sites on any one investing method, it’s best to get a clear mental picture of the current state of affairs in southeast Michigan.
While most markets held steady until the subprime crisis pushed everything over the edge in February of 2007, Michigan values started their decline all the way back in 2004. At this same time renegade mortgage brokers in states like California, Nevada, Arizona, and Florida were still in the middle of their stated income and no-doc mortgage boom.
This extra “down time” has meant that the Michigan market has had to handle all the troubles, stresses, and strains that the national market has been experiencing along with an additional two years of declining home values which other areas have not had to deal with.
Michigan homeowners, are not much different from those that live elsewhere in the nation. They too are prone to make bad decisions based in fear when faced with an unfamiliar and frightening situation. Watching values decline for almost half a decade has left many Michigan residents in a state of shock. When things were good many local residents felt that values would continue to rise and the good times would endure forever. Now with values falling they, visit:-justpersonalcare.com no-carb-diet.com ewelding-supplies.com procarmaintenance.com NewInlineSkating.com mistakenly harbor the misguided belief that housing values will continue the present pattern of double-digit declines for years to come. Same mistake, different day.
This is of course an absurd position to take, but as we said before, people placed in extreme situations often cling to flawed concepts and ideas due to their emotional state. You’ll see that it’s this belief on the part of the consumer that sets the cornerstone for building a solid foundation for investing in Michigan Real Estate the right way over the next few years.
A large number of Metro Detroit residents are actually rejecting a cornerstone part of “The American Dream” which is the idea that a family’s home is their greatest investment and every family should strive to own one.
After focusing on the short-term reality of where home prices are at today, we see a new sentiment taking root among local homeowners that regards renting as actually being better than owning.
The new belief that “Renting Is The New Buying” has thankfully not really caught on in other markets, but it is alive and well in Metro Detroit…and the number of people who’ve adopted this paradigm shift is growing each day. Renting has lost much of its negative stigma and is instead, for the first time, being heralded as a smart move in the eyes of friends and family.