Log In | Register
Real estate is one of the most important asset classes owned by investors. Investing in property is a high risk venture and it is also capital intensive with limited liquidity. However, smart leveraging through mortgage leverage can make astute investors gain substantially over a long term. On the other hand, if an investor has limited or negative cash flow, investment in real estate can fail, with the investor often having to resell properties at a loss in order to avoid bankruptcy.
The current US recession was initiated by the burst of the housing bubble. A highly conducive banking environment and ready supply of homes in most parts of the country allowed just about anyone to obtain a mortgage and own property. The downturn in the economy saw many families losing homes to foreclosure in the worst years following the crisis. In 2007, almost 1 in every 100 American households was experiencing a stage of the foreclosure process.
Global property markets are at present showing signs of weakness. Real estate markets in Asia are cooling off, but Asian investors are increasingly investing in the foreign property markets of Europe and North America. According to Jones Lang LaSalle, Asian investors were responsible for 1.7 billion pounds worth of transactions in commercial properties in central London in 2011. The 2010, the figure was 668 million pounds, indicating a 150% increase over one year. This corresponds to a cooling market in China where deceleration in the housing sector could result in 2% fall in the country’s overall growth in 2012. Economists are projecting real estate prices in China to plummet 10-20% in the year 2012. China invested 635 billion pounds in housing development in 2011. That is substantially more than the US had invested in residential properties in 2005, during the peak of the real estate bubble. However, in contrast to the situation in the US, there is no fear of oversupply in the current Chinese housing markets.
The United States has shown some signs of recovery in the housing sector. A weak dollar and attractive prices has made investment in real estate in the US an attractive proposition to foreign buyers. Improving employment statistics and increased consumer confidence is also pushing up domestic demand. The outcome of the housing bubble has left markets flush with some of the most attractive prices for housing at current levels. Many US states are witnessing major activity in real estate. Portland Oregon is an example as one of the cities that have observed soaring sales in housing in the US.
Real Estate Portland - When looking for real estate, Portland, Oregon is a great place to invest and live. Visit Properties of Portland, online to find suitable housing for your family.
