The Wisest Investment You Can Make
The other day I went to an Investing Club in Hawaii where I live.
The leader of the club began discussing a wide variety of investing opportunities, including the stock market, mutual funds, gold, bonds, and so on.
But I was surprised by the one area that he did not bring up: which was real estate.
I had to admit, the majority of the investing ideas that he was suggesting were to me little more than a crap shoot.
The value of your investment could go up and you may make money.
But just as easily, the market could deteriorate and you would lose your money.
That's why I suggested to him the topic of real estate investing.
The speaker (who is a licensed investment broker) said he really didn't know very much about real estate.
Although he "liked" real estate, he didn't personally invest in it too much.
But then he added, "But right now is not the time to invest in real estate.
" He mentioned that one or two investor experts he listened to with reverential awe said that it's not a good idea to be "in real estate right now.
" Because I have done so consistently well with my real estate investments over the years, I challenged this view.
Currently, with the sub prime bust, real estate prices are diminishing and it has definitely become a buyer's market.
If you know what you're doing, the best time to buy is when properties are selling low.
That's when you can take advantage of the best deals.
Foreclosures have also doubled over the last year and you can find many of these properties priced well below their true value.
When people buy over their heads, and then are forced out of their homes through foreclosures, where will they end up? The vast majority will go into a rental.
How does that affect the price of rentals, even in a poor market? It drives them up.
The more urgent the need becomes, the higher rents will go.
That's why it is clearly a great time to be a landlord.
The demand for rentals will continue to go up.
Some real estate is clearly going down in price, but you can be sure that its value will start climbing again once the market settles out.
In general the real estate market is the safest place to invest.
And our experience over the last 35 years has shown this.
The leader of the club began discussing a wide variety of investing opportunities, including the stock market, mutual funds, gold, bonds, and so on.
But I was surprised by the one area that he did not bring up: which was real estate.
I had to admit, the majority of the investing ideas that he was suggesting were to me little more than a crap shoot.
The value of your investment could go up and you may make money.
But just as easily, the market could deteriorate and you would lose your money.
That's why I suggested to him the topic of real estate investing.
The speaker (who is a licensed investment broker) said he really didn't know very much about real estate.
Although he "liked" real estate, he didn't personally invest in it too much.
But then he added, "But right now is not the time to invest in real estate.
" He mentioned that one or two investor experts he listened to with reverential awe said that it's not a good idea to be "in real estate right now.
" Because I have done so consistently well with my real estate investments over the years, I challenged this view.
Currently, with the sub prime bust, real estate prices are diminishing and it has definitely become a buyer's market.
If you know what you're doing, the best time to buy is when properties are selling low.
That's when you can take advantage of the best deals.
Foreclosures have also doubled over the last year and you can find many of these properties priced well below their true value.
When people buy over their heads, and then are forced out of their homes through foreclosures, where will they end up? The vast majority will go into a rental.
How does that affect the price of rentals, even in a poor market? It drives them up.
The more urgent the need becomes, the higher rents will go.
That's why it is clearly a great time to be a landlord.
The demand for rentals will continue to go up.
Some real estate is clearly going down in price, but you can be sure that its value will start climbing again once the market settles out.
In general the real estate market is the safest place to invest.
And our experience over the last 35 years has shown this.
Source...