Last spring, I was invited to go to Philadelphia and participate in a "real estate bubble" discussion on Ch 8's "Money Matters Today." Television reporters, newspapers, and media hype love scaring you to grab your attention. On the TV show, I defended the real estate market.

What's behind all this bubble talk?

Before you give any substance to warnings about a "real estate bubble," look closely at the source. Many stock brokers jump on the bandwagon of real estate doom to get investors back into the stock market. Also, many negative reports originate from mortgage lenders who want to keep the mortgage insurance rates high and keep the insurance premiums coming in for loans on houses that have appreciated.

So, what happened to the real estate bubble in 2005?

I can't speak for all investors. If my family had been scared into discounting our investments, selling out, and not buying more property in 2005, we would have lost a million dollars. We bought and held houses. All of our property increased by 20% - 35% and the ones we fixed increased in value even more. In particular, for one home we paid $120,000 and spent $10,000 in repairs - within the year it appraised for $325,000.

Who profits from the real estate bubble?

Besides media scaremongers, mortgage insurance providers, and stock brokers, real estate investors make even more money. What's that? How do real estate investors make money from the real estate bubble? They take advantage of desperate home sellers scared by the media.

This week, we bought an investment property that the home seller, in the midst of a divorce, discounted for a quick sale. The $340,000 property appraised for fifty thousand more than the purchase price. Now, we could quick sale the property for fast cash, but we're in for the long haul. The property has great development potential. So, we'll let the tenants pay for the mortgage and maybe tear the small house down in a few years. A half acre, one lot away from a future marina near new condos, has many possibilities.

Keep the bubble talk. People always need housing. The more you hear about the pending burst, the more money real estate investors CAN make.

Copyright 2006 Jeanette J. Fisher

Jeanette Joy Fisher

Jeanette Fisher, author of over ten books, including university textbooks and encyclopedia articles on color psychology, has researched the effects of the environment on emotions for over 15 years. Jeanette has appeared on internationally syndicated radio and television and teaches Design Psychology and real estate investing.

She offers free information on interior design, real estate investing, and mortgage credit help from her websites. Jeanette Fisher's books, available from her websites and from Amazon, help real estate investors, home sellers, and home makers. To find out the four steps for beginning real estate investors, five ways to use interior design for home staging, or how to makeover your home for joy, visit Jeanette Fisher.com. And while there, don't forget to subscribe to her free newsletters.

Jeanette has so many websites because her name can be spelled so many ways.