How I Turned $50 into $5 Million in Country Property Part-Time And How You Can Do the Same
Front Royal, VA (PRWEB) July 6, 2005 -
Can real estate investors shake off the feeling of doom and glom in the home market?
The author of a new real estate book, "How I Turned $50 into $5 Million in Country Property Â Part-Time Â And How You Can Do the Same," says conventional wisdom is wrong about a crash in the home and land market. B.K. Haynes, The Prophet of Boom, says history proves that the bubble wonÂt burst anytime soon.
Haynes, a Virginia broker and developer with over 40 years experience in the mid-Atlantic region, says the real estate trends generally follow the ups and downs of the economy and that calamities and corrections in the economy have historically occurred at the end of every decade, not in the middle. To back up his theory, he points to facts showing recessions, depressions, wars, and socio-economic disruptions ushering in every decade in the twentieth century and now into the new century. He also says the economy has historically moved upward in the second year of a sitting presidentÂs term. Recent exceptions were Nixon in 1970 and Bush in 1990. This is the second term of George W. BushÂs second term, and figures show the economy is on an upswing. The same upward trend was true in 2002, the second year of his first term. And both of ClintonÂs terms in office followed a similar growth pattern.
Haynes says the media is in a frenzy searching for culprits for the coming crash. Possible suspects are greedy investors flipping homes, aggressive lenders promoting looser standards, and perhaps the Federal Reserve for fiddling with interest rates. In reality, all investors have only themselves to blame if the bubble monster bites them. Haynes says that none of these alleged Âboogie men" is at fault for the inevitable bubble burst.
In Haynes latest book titled, "How I Turned $50 into $5 Million in Country Property Â Part-Time Â And How You Can Do the Same," he predicts boom years ahead. Despite the Doom and GloomersÂ hysteria over an imminent bubble burst in real estate, Haynes says the actual plug is yet a few years off. If the past is any guide, the real estate burst will occur in concert with some other major calamity at the end of this decade. But he cautions that any minor disruption in our socio-economic sphere before 2009-10, is likely to spike fears that the end is near, when such a setback would actually be only a precursor of the ominous quake to come.
Haynes suggests that if you plan to stay in your home for the long haul, you should ignore the drumbeat to sell. But if youÂre in it for money, he counsels cashing out when the long-term interest rates hit 8% or 9%. This may be a signal that the harbinger of worst things to come is at hand.
For owners not in love with their homes, Haynes suggests you look at who is buying up most of the real estate in your area. If investors are taking the cream of the crop, he says you should review your financial strategy and consider selling at top dollar before they take their profits and run before the crash. He says that the real estate bubble, when it happens, wonÂt burst suddenly like the stock market. You will have time to decide. And rising interest rates are a good sign that things are cooling off.
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