Who makes money when real estate market crahes?

Question

Who makes money when real estate market crahes?

Answer 1

Despite what the media would have you believe, falling housing prices benefit a lot of people.

1. home prices are low enough for first-time home buyers to buy a house

2. home prices are low enough for people without a big down-payment to buy a house.

3. home prices are low enough so that people who are downsizing their house can make out very well

4. reduced home prices mean that property taxes paid by homeowners and are lower

5. reduced property taxes mean that rent prices can go down, too

6. reduced house prices mean more disposable income to spend in other ways, benefiting the economy and other businesses

7. reduced house prices mean less undeserved income for real estate agents

8. anyone who has shorted a REIT stock will make out

Answer 2

i dont know who does.....But i know who dont !

(land surveyors)

Answer 3

Those who sell just before the crash and then use that money to buy after the crash happens.

Answer 4

the ******* bank

Answer 5

no one which is why the federal government is bailing all these companies out. people think banks do but owning a home (because someone foreclosed) is NOT a money maker for the bank.

Answer 6

the rich people who can affod to buy those houses and wait till the market picks up again.

Answer 7

Well investors do. When a real estate market crashes then investors can come and buy what would be prime real estate at subprime costs. Then when the market rebounces, and it always does, they turn a huge profit. In short, investors, banks (on remortgages) turn a nice profit when the house market dips.

Answer 8

The middle man and of course to the lawyer too..

Answer 9

Investors.  You don't even have to be a smart investor.  If you're in the market looking, are qualified and can purchase under market value, you are golden.  You can rent the property, and wait until the market rises again, before selling.

Banks.  They are the guys that give the investors the loans.

Realtors.  They get the commishes.

Any more questions?

Answer 10

those who can stay in for the long term

those who have money to buy cheap and hold on

foreclosure attorneys

Answer 11

The government, and the list goes on and on and on@@@

Answer 12

No one knows the future.  It is always easy to look at people that do well and think they are very smart.  Every investor takes a chance when they invest.

But the people that invest in real estate and are able to hold it long enough usually do very well.  If your town dries up and no one wants to live there then buying there would be awful- but if this is just a temporary thing for your town then buying while prices are low and holding until things improve would be a smart thing.  (as long as you can afford the payments in the meantime).

Answer 13

People who buy at or near the bottom of the market and sell as the market recovers