The real estate cycle
THE real-estate market has a cycle of its own just like any other industries, everything has its upturn and downturn timeline even the gadget that you use.
As an investor or home buyer, it’s important to consider how the property cycle works to evaluate your position for both the long and short term.
According to Willowdale Equity's online article, 'The 4 Phases of the Real Estate Cycle Explained' a real estate property cycle has four stages: recovery, expansion, hyper-supply and recession.
"These real estate cycles are pretty complex; its crucial to remember that they're happening simultaneously even though the national economy is robust, real estate sales in some locations may slow down," the article stated.
The article highlighted that this could be referred to as buyer phase one and a great time to purchase as prices are very attractive and is the longest stage of the cycle.
With this stage comes excess supply of properties on the market, prices fall, demand falls, new construction can be overpriced and stagnant, bank foreclosures sharply increase and investment property values decline to the lowest level.
Recovery stage: Expansion stage:
This is known as the buyer phase two and is also a generally best phase to buy in as
Residential and commercial properties in the Suva peninsula area.
you'll get the shortest duration of time until prices start to heat up.
"Investment properties are at their lowest levels but begin to increase slowly, rental rates are at their lowest level and have begun to increase slowly and competition for bank foreclosures is fiercea as their number declines.
"Purchasing real estate in the expansion phases does not give the full margin of appreciation like buying at the very bottom would. Still, it does provide a solid riskadjusted return."
Hyper supply:
This stage is referred to as the seller phase one where investors get the top dollar for their properties and can be the worst phase to purchase in.
Properties are sold faster and the time on the market is at its lowest point.
"In this phase, it's best to sit on the sidelines and wait for things to cool off. Instead, it's best to focus on what markets and properties you want to pounce on once the opportunities better present themselves in the subsequent few cycles."
Recession:
Known as the seller phase two, this is when the market begins to increase where sellers are waiting longer but are still getting inflated prices.
"The amount of construction in the pipeline is excessive and the potential for overbuilding is likely.
"This is ground zero for the economy real estate prices and poses the most significant opportunity to scope up distressed real estate for pennies on the dollar. "
YOUR VISION IS A LIST OF WORDS using the following rules * Each word must be four letters or more * Each letter may be used only once for each word. *Each word must contain the centre ‘Focus’ letter. *A minimum of one nine letter word must be found. *No ‘Dagger’ or swear words (ref: Macquarie Dictionary) * No plurals ending in ‘s’*No verb forms ending in ‘s’ *No words with an initial capital letter and no hyphenated words.
Venus Opening Statement: “Live in the moment,” they say, without giving instructions as to how to accomplish it with a mind that’s capable of hurling itself forward to all outcomes, or backward for infinite processing. Venus has settled into her Taurus home and is more convinced than ever that the secret to embodying the moment is to engage your senses, which are anchored in the now.
CAPRICORN (December 22 to January 19)
Stop giving yourself to a vacuum. Who mirrors you and makes you happy to be in the moment, eager to show your best self? Who makes life better by just being there? That’s the person to focus your energy on.
AQUARIUS (January 20 to February 18)
You’re good at seeing the future, or at least you can predict the likeliest outcomes. You may even feel confident enough in your predictions to make a bet, and you’ll have plenty to take you up on it too.
PISCES (February 19 to March 20)
It is useless to try and convince anyone to believe other than they do. If a person needs to feel something is true, they will, despite any evidence to the contrary. Minds change for reasons other than persuasion. You’ll work well with these concepts today.
ARIES (March 21 to April 19)
Smiling changes your perspective. You’ll think more creatively and love more readily. Relatedly, that person who makes you smile and laugh is someone to keep close.
TAURUS (April 20 to May 20) CANCER (June 22 to July 22)
Your big-heartedness shines. Giving to those in need is so easy for you that you’d hardly call it charitable. True charity is giving when your need is just as grave as the other person’s.
LEO (July 23 to August 22)
There’s a conflict brewing, but your wisdom will keep you at the proper distance from it. You’ll be open to hearing different points of view and you’ll be slow to take a position. Time will change or reverse opinions.
VIRGO (August 23 to September 22)
Misperceptions abound, and some of them may focus on you. It will be valuable to know what they are thinking and why. Because no matter how off-base an outsider may be, there’s still social information to glean -- a nugget in your pocket.
LIBRA (September 23 to October 23)
You’re more responsible than most people and with that quality comes a longer to-do list. You’d rather not be in charge, but if you weren’t less would be accomplished. Someone will recognize you for this today. Amazing -- and finally!
SCORPIO (October 24 to November 21)
Your mind will race to a time one month from now, then seven years from now... this is a talent, though an uncomfortable one. To think ahead is more animal than you imagine. The squirrel saves nuts, and the lion has a cache, too.
SAGITTARIUS (November 22 to December 21)
It is impossible to be selfless today. What you do for another person you also do for you. All action and all inaction contributes. Since you can’t be selfless, consider being very selfish instead, which will also work in reverse.