Few Real Estate Investors Worried About A Bubble

I just read an article today that noted a survey conducted this month showing that only 14% of those surveyed are "very concerned" about a real estate crash within the next six months.

Some people are just plain confused about real estate and try to liken the real estate boom to the stock boom of the 90's. There's just no comparison. I mean, think about it....

If you buy $100,000 worth of stocks today, what's it worth. It's worth $100,000. Buy you might buy a piece of real estate for $100,000 and find that it's worth $150,000. It's called getting a good deal. You can't do that with stocks.

If you buy $100,000 of stocks today, what can you do to improve it's value. Nothing. But if you buy a $100,000 house there are lots of things you can do to improve it's value.

If you want to buy $100,000 of stocks tdoay, how much money will you need. You'll need $100,000. But it's quite possible to buy a $100,000 house for little or nothing down. That's called leverage. The bonus is if the market goes up 5% you've got a $5,000.00 gain. Even if you put $10,000 down, that would be a 50% return on your investment.

It's too bad that all this "bubble" talk seems to create fear in some people's minds. However, the wise investor will see this as an opportunity. What about you.

--Dan Forbes