Watching the global news over the past month would make anyone wonder what has come of the U.S. and global economies. Stocks are down in nearly every market worldwide, huge businesses are dying and unemployment is rising everywhere. The world is approaching recession, if not depression, and in an attempt to rebound the stock market, financial experts are now repeating some of the same phrases many real estate professionals have been saying for years “Now is a great time to buy”. Will it work?
The bottom line, Americans are in debt, until each American on a personal level addresses that issue, our situation will most likely not improve. Our nation has been fueled by credit, fake wealth, over the past decade and pumping more credit into the market is like feeding a meth addict more meth – it is just a temporary fix for a huge problem.
Watch any news station for a few hours and you are bound to see at least one expert talk about the many stock bargains and tell viewers that they should jump in and buy stocks – sound familiar? Every time I hear this, I wonder if their claims carry any weight.
With real estate, you actually get something tangible that you can live in or develop, a home provides shelter, and right now, interest rates remain near all time lows. For the right person, in the right situation, now truly could be the best time to afford a new home.
If we are actually heading towards a depression, most businesses worldwide will realize less revenue, is there a stock out there that you can call home?
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Personally I feel that there are some really good opportunities right now in real estate if you are planning to hold the property for at least four to five years.
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@ John, I agree, I think people need to get over the boom profits and remember that investments are a long-term commitment.
I have always been a fan of real estate over stocks. If your stock portfolio falls 50%, you have 50% less money. If your home value falls from $500,000 to $250,000 you don’t loose half the house.
Jim Adams – CEO
New Homes Directory .com
Diversify. But the best investment may be in your own business.
There are tons of opportunity right now for income property in the low end price point. Cash is king.
Tony
Tonys last blog post..Baltimore Orioles at Kansas City Royals Free Major League Baseball Pick
Although John’s comment was made back in October, it still holds true. The market hasn’t “turned around” yet. Those looking to invest in properties should be prepared for the long haul. But what an investment! My mom just recently picked up a 900K+ home for just under 550. She’s looking to make a killing in the next sellers market.
Quick question since we seem to have a good supply of agents ’round these parts:
If I pick up a house from a short sale (yeah right…pick it up right quick…lol), auction, etc., for 500K but the appraisal value is 800K, am I going to be paying property taxes on the 500 or the 800?
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