2021 might bring a real estate crash, but analyzing the last crash of 2009 and what the FED is doing, it is more likely we see inflation increasing real estate prices rather than collapsing them.
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0:00 Real estate investing
2:29 2021 crash ahead
3:11 Supply and demand
6:44 Interest rates
8:28 Inflation impact
9:47 Government protection
11:09 Mortgage rates low
12:22 The right property
12:55 Rent vs price rule
15:31 The rule of 66
17:10 Real estate sentiment
18:37 Investing forecast
The real estate market is in the following situation:
– undersupply in more than 50% of places all over the words – be there!
– a differentiation in demand for various real estate properties
– Extremely low interest rates that make it cheap to buy and take a mortgage
– Inflation that will likely push prices higher because the FED is printing so much
The key to investing in real estate are:
– you are investing in one property, not the real estate market
– find a deal where that is a bargain by using the rule of 66! When you look at 66 properties in a market, you are an expert and you know what are the best deals
– create a financial structure that in the worst case scenario you don’t lose anything but get a small return
– in the best case scenario, the sky is the limit
– will there be a crash in 2021? Nobody knows but what I know is that waiting for a real estate crash usually costs more than missing the opportunity to buy when you have it.
IN SHORT – IT IS NOT ABOUT THE REAL ESTATE MARKET BUT ABOUT THE REAL ESTATE YOU BUY AND THE FINANCIAL STRUCTURE YOU HAVE ALONGSIDE YOUR INVESTING GOALS!
#realestate #investing #crash…(read more)
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You actually put both crash and inflation in the title so that was a real click bait! 😀 (I clicked mostly because I'm looking for an inflation edge actually) Thanks for the video, it was really informative.
I clicked for the hedge against inflation. Come here from an interest to invest in an agriculture EFT, you have the best video out there
I would've clicked anyway.
For me it was "Inflation Hedge"
Again, best finance channel on YouTube. I don't trust anyone else as much. Thanks Sven!
Don’t underestimate your beauty! I,m also following for that ;)) apart from excelent content. Your appealness is also compounding on me jajajaj
Is it that because of the govs artificial intervention with all the stimulus during the pandemic they actually prevented the real estate market from a great decline? And not only but haven t the govs actually tackled and prevented an economic crisis for the first time in capitalist history? Because in 2020 there was no crash, no economic crisis. None now so far. Real estate still going up. It s all because people have money and still spending, isn t it? Whether it s artificially printed money or not. But this can t work forever. I suspect after the corona bullshit is over in 1-2 years max, then another economic growth period will occur followed by a fundamental economic crisis in about 10 years time. Crisis that will then change systems in the financial world. Printing money woun t be anymore an option. Maybe back to gold or more bitcoin in our lives. It s just a scenario out of the basically infinite possibilities that future holds for us
this channel is worth at least 2M subscribers
crash, no crash, I would have still watched the video sooner or later. But the title did trigger me, indeed!
i am finking to subscribe
Good video. Very helpful. Thank you.
7:40, He's wrong. whenever interest rates rise, property prices fall in other countries and the USA in 2008
I waited until a real estate crash before buying and bought a €250,000 house for €80,000 (2010). I bought my first house in 1996 at the bottom of the market after the crash of 1989-1994
Have you ever talked about real estate booms correlating usually with commodity booms?
Great content on real estate investment Sven ! Thank you for this video, I found it helpful. The word "crash" is a real clickbait nowadays, so you can incorporate it in the videos to get more views, but we (the subscribers) will continue to watch your videos no matter the title, when it's quality, it doesn't matter.
Your title strategy is true w the word crash!
Sven, do you think it’s still a good time to buy? I didn’t click in the video because I read crash I clicked on it because I was interested in seeing your point of view in real estate market. I live in Las Vegas and prices have been going up up and up while the whole town is shut down
I clicked Crash
Really good video, just enjoying your channel. Pozdrav iz Hrvatske 😀
I really like the concise and elegant economic analysis.
You are at peril as an investor if you ignore the declining role of scarcity. Before covid, prices in some areas were rising due to scarcity or the lack of open homes. Now, more and more buyers are able to move to more affordable areas and keep the same jobs. It is too early to know how much or how long the departure of high salary buyers from coastal cities will impact those markets. Investment decisions cannot be blind to this emerging trend
I clicked for “inflation hedge” =O
I love all your videos Sven, but yes you got me excited on this click bait title
I'm not so sure that there's not going to be a Real Estate crash in the near future because there's a few "red flags":
– the upcoming recession which will lead to more mortgages becoming delinquent
– banks started BTOs years ago to "market" their subprime mortgages years ago
– stocks like NMI HOLDINGS (mortgage insueance) and ASPS (foreclosure services) are very volatile
– do you really think interest rates are staying close to 0 (US) or below 0 (European Union, Switzerland)? I know Japan did/does it
Those reasons make me nervous and think of a crash somewehere in the not too far future …
For lots of places in the US other than the most expensive cities, housing is a value investment actually, chances of it dropping is near 0 unless some very drastic event like world war, or radical left become president like AOC/bernie.
without crash, no click from me.
the reason people click on it cause they think its related to crash bandicoot. sadly he's never in these videos.
I always click your videos. To me saying crash in the title is not important because I click your videos.
Hey Sven! Finally did it my self. We bought our first home in Croatia. 30y mortgage with a 10y fixed rate at 2.12%. We also get a 30% subsidy from the government of every monthly payment for the next 7y.
I will prepare to pay out the whole loan if i dont like the interest rate in 2030.
For your viewers from Europe in countries that cant find fixed for 30y this is one option. If you can find a mortgage with a 7-15y fixed rate prepare to pay the loan in full after that period, or sale the house after that time.
Im expecting that in the period of a business cycle the inflation-deflation tug of war will be normalized and the rules of the game will be more or less predictable.
Thank you Sven for the education!
Why don't you talk about the terrible demographics Europe has coming in the next few decades and how that will crush demand?
Congratulations on 100K subscribers!!!
You deserve it, you are fantastic!!!
Hi Sven, I am a research platform subscriber, based in Italy..i Just bought a house …my questions is with current low rates interests would you get a mortgage even if you had the cash to pay for your new house? The house price is about 85% of my cash. And in addition have some money invested following part of your lump sum and model portfolios.keep up the good work!