I read an article about people that are trying to flip real estate. It just reinforces my opinion that, even with real estate prices as high as they are, you still need a clue to make money in real estate. The article makes a couple good points though about the fact that with so many people buying properties to hold either short term, or long term, it’s creating an excess supply of rentals out there. Some areas are seeing rental rates drop. If home prices start to flatten out and the rental market continues to be flush with lots of available rentals, the risk of trying to buy and sell homes just shoots straight up. Here’s the link to the article:
http://abcnews.go.com/Business/CSM/story?id=804255
Anyway, it’s decent reading. I’ve been really wanting to get another piece of real estate, but I’m really concerned about whether I want the risk. I may just buy a piece of property that I want to use later, just to lock it in at today’s price. (I’m thinking land that I can get my friend to build me a place on for retirement)