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Understanding Property Prices
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Understanding Property Prices

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ForeclosureDataBank.com are experts in foreclosed property and predicting price trends. This is a rare opportunity to share this knowledge.

ForeclosureDataBank.com are experts in foreclosed property and predicting price trends. This is a rare opportunity to share this knowledge.


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  • 1. UnderstandingPropertyPricesUnimaginative people forecast property prices Contentsin the same way they do the weather – what Introduction....…...............…....................…..1 Interpreting Economic Growth....................2happened yesterday will be approximately the Understanding the Role Mortgage Interestsame tomorrow. The problem with this Rates Play.....................................................2approach is that they miss out on planning for Countering Inflation.....................................2unnexpected things, like balmy days whenprofits are available to be hunted down.
  • 2. 2 Interpreting Economic Growth Governments and their banks are quick to announce up-ticks in their economies, because they make good political profit from them. Average real estate prices are sensitive to these announcements, especially in early days. When you anticipate and know this, you can turn profits surprisingly quickly. For example, a 1% increase in gross national product may translate to a 4% price increase if other factors hold good.Understanding the Role Mortgage Interest Rates PlaySpeculators need increasing average property prices to make money. In turn, these need eagerbuyers. Few of these can afford cash though, and this means that cheap loans are required tocomplete the growth cycle. This is a hard nut to crack. Governments lower interest rates inrecessions and tweak them up in boom times to control inflation. Between these two points,there is a magic moment when interest rates are low and property prices are rising. This is whenproperty speculators strike gold.Countering InflationAs mentioned, interest rates have a strong influence onproperty prices, and hence the profit that may be made fromselling on. There is a dwell time here too - sellers are notalways aware of current trends and may sell on at lower pricesthan they need to.
  • 3. 3Foreclosure DataBank Real estate investment is an art and not a science. Making profit with property is as intuitive as any other form of1602 Alton Road #432Miami Beach, FL 33139 business. Many ForeclosureDataBank.com customers have1-888-596-9279 made money by blending intuition with their knowledge of thecontact@foreclosuredatabank.com effects of economic growth, interest rates and inflation. WithThe biggest foreclosures database on the understanding, you could do so to.webFind us on the Web:www.ForeclosureDataBank.com