No Inventory in the Property Market You’re Interested In? Don’t Worry

Why a Wait List for Buying Property Isn’t Such A Terrible Idea

So you’ve finally made up your mind to invest in real estate! Well done! If you’ve done it later in life, it’s better late than never. If you’ve made this decision early in life, congratulations! This is an investment that is going to be life-altering going forward, and you’re probably ready to dive in! You’ve done your research and have some idea about the best locations and markets to invest in. All good so far. But then comes the problem of limited inventory. In many of the good property markets, the demand far outstrips supply. So what do you do?

Waiting lists are not a bad thing.

So this is something that an enthusiastic investor is going to baulk at – you’re ready to commit but the universe seems to be conspiring against you! They’re saying there’s no inventory. You’re being asked to wait. They are suggesting that you get on a waiting list. It can be rather anticlimactic. You’re probably wondering whether you should move to some other market where there is inventory.
So should you move to another market? Not really. You don’t necessarily need to look elsewhere. But if you want to consider other options, I can show you the markets that I think are good to buy in right now, and you can look at those.
Once you’ve made that investment there isn’t much for you to do – remote control riches, remember? Think about the bigger picture. You’re investing for the long term – for ten, twelve, fifteen or more years. So it doesn’t make much of a difference if you’re investing right now or a few months down the line. It is not such a bad thing to spend a little time on a waitlist if it helps you make the kind of investment that is going to grow in value down the line.

There are factors more important than inventory.

If the market of your choice has low or no inventory right now, this doesn’t matter too much. If you’re spending a while on the waitlist, that is not important. What is important is that you get yourself the longest term loan possible. Right now, with government spending policies being what they are, inflation seems inevitable. And as I always say, inflation is your best friend if you have a fixed-rate loan that is repayable over a long period.
Watch this short episode to understand what to do if the market you’re interested in has no inventory. To know about which markets are good for you right now, contact us at icgre.com and find the answers to all your questions.

 

Why the Current Housing Market Is Not a Bubble the Way 2006 Was

Rising Real Estate Prices: To Invest Or Not To Invest?

 
Many of us are still scarred from the crash of the 2004 to 2006 years when property prices crashed after being artificially inflated. Today, when we see property prices rising again, the specter of that crash looms in our collective memories. We had seen a lot of people hurt at the time and wonder if the current housing market is a bubble as well – with a similar crash in store. However, as an investor then and an investor now, I can tell you that the circumstances are very different today. Here’s why the current housing market is not a bubble…

The crash of 2006.

If you recall, during 2004 to 2006, practically anyone qualified for a loan. The lending standards were so low that there were practically no barriers to getting loans. People without good credit were getting loans without proper disclosures or surety.  Loans were being issued for 100% and at times 125% of the property value. In my experience, there were people working at McDonald’s, who were going out and buying seven homes!
This situation was just not sustainable. People without the wherewithal to repay were getting loans without necessary checks, with the result that the proportion of bad loans was very high at the time. Too many people were simply not able to repay. This was a bubble in the real sense of the word, and a bubble that everyone could see was going to burst before long. It did burst, and a lot of people got hurt.

Why things are different in 2021-22.

Right now, we see real estate prices rising once again and a lot of people come to me expressing concern about another possible crash. However, there are many ways in which the situation is very different today. One very significant change has been the way people are choosing to live now in the pandemic world. People prefer single family homes; standalone houses rather than apartments with lifts and shared surfaces, thus pushing up the demand for them. They prefer to have space to call their own; maybe an extra room or two for those work-from-home gigs.
Secondly, it is a lot more difficult to get a loan today, thanks to a changed market reality, the Frank Dodd rules and for other reasons. 
These, and many other reasons, are pushing property prices upwards right now. I talk about them in my latest episode. Watch the video or listen to the podcast for more on why I say that the current housing market is not a bubble that is going to burst.  

Common Real Estate Investment Mistakes and How to Avoid Them

Avoid Investing Mistakes & Secure Your Retirement Riches
There are a lot of people I work with who are looking to secure their retirement years, and to create wealth for a comfortable and prosperous future. Over the decades of helping people create their retirement riches, I have noticed people making some of the same investing mistakes over and over again. The result can be an investment that does not increase in value, money spent in repairs, problems with a tenant, and other headaches.

Where and what to invest in.

One of the common mistakes people make is to choose to invest where or close to where they live, simply because they are comfortable with the idea of this. However, the valuations may not make sense. Buying expensive property or older homes doesn’t make sense even if the properties are close to where you are. If property prices don’t appreciate and you don’t get good rental incomes, your investment does not make sense.
Another common mistake that people make is to decide to go solo after they’ve bought property. They forgo the services of a property manager; probably to save a bit of money, because they imagine that they can manage their property by themselves from a distance. This is brave! In fact it is foolhardy! In all my years as a real estate investor, I have not been that brave myself. There are so many little details and issues that get taken care of with a property manager that it makes no sense to not use their services. You’re not saving money – just buying yourself an additional headache! In my latest podcast I speak about these and some more of the most common real estate investment mistakes that people make.

How ICGRE makes investing easy.

At ICG Real Estate there is a lot that gets taken care of for you. You don’t have to go looking for a broker and you don’t have to make the mistake of hiring someone you don’t know off the internet. You have some bargaining power with the developer and you can get a better deal than you would if you decided to fly solo as an investor. The reason is that ICG gives you clout. It gives you the collective clout that you would otherwise not have. And it costs you nothing extra – so why would any sensible investor deny themselves the advantage that working with ICG brings?!
In my book Remote Control Retirement Riches: How to Change Your Future with Rental Homes this is exactly what I speak about. I explain why I recommend investing in brand new single family homes, the benefits of hands-off rental management, tax benefits, how to build a potentially multi-million-dollar rental home portfolio, and more. You learn how to manage your investments in times of boom as well as bust, and how to safeguard your investments through it all.
Watch my latest video to know about the most common real estate investment mistakes. Learn from the mistakes of others so that you can avoid repeating them.