During the growth of the real estate cycle phase the price that is paid for the lands and plots is very high due to future expectations. Developers who acquire these assets outweigh this abnormally high price by increasing the price of the apartments and houses that built in solar sayings. While the cycle behaves ascending all paid price seems little and builders get high profits from the sale of the homes. However, when the cycle enters phase of decline appear a series of problems.Nature pessimistic investors analyze the trend in the price of land market and are more selective when buying land. Optimistic investors trust in which the price of plots will continue to grow and having the same current progression, are therefore willing to pay much more for the same solar.
On many occasions, the sale of land is very active and a plot in a privileged location can pass through several hands soon too to increase your price. Pessimistic investors, when it comes the crisis real estate are less affected that optimists since they have been more cautious with their investments, have won less money and also lose less when the market enters recession.The majority of promoters bought land within its geographical area, i.e., do not move to other municipalities in search of better opportunities. However, during the real estate recession it is important to analyze other areas different than usual since the housing crisis does not reach all sites at the same time and as a population already enters real estate decline another may still continue to grow. It is precisely in these cases when should sell before the lowering into a place and buy another where there is still upward stroke.A detail or aspect that many investors do not know is that the greatest benefits in the real estate sector are produced when a Town Hall re-qualify a rustic plot and converts it into buildable, not constructing buildings, selling flats or urbanizing ground. Original author and source of the article.