The Big Bear Report
May 2009
A Monthly Review of the Big Bear Real Estate Market
What's it going to take for buyers to understand that NOW is the right time to invest in property? Of course there are some buyers "sitting on the fence" for fear of losing their job (that's understandable). What is not understandable is why so many buyers remain on the fence from their fear of buying before the market "hits bottom". Today we know values are down and bargains are to be made. We also know that interest rates are currently at a 42 year low (4.6%). So what happens if values continue to drop and we "bottom out" but then interest rates go back up to 8% or 10%? So shouldn't it become a strategy rather than a guessing game. Today, most people look at "investing" as a transaction rather than an investment strategy. People tend to invest in markets where their ego is easily satisfied by picking the right investment with the highest return. Unfortunately, with the recent mortgage melt down, investing in the real estate market (especially in resort areas) has caused people to forget about the "value added" return of the enjoyment and use of their investment. You can't get that with stocks, bonds or mutual funds. Foreclosures and "short sales" currently dominate most real estate markets and Big Bear is no exception. Although we try and show the benefits of purchasing a property, free of missing appliances, fixtures & excessive wear and tear, buyers today have us search out the best "deal" convinced the cost to "bring it up" to turn-key condition will be less than what the actual costs will really be. Real estate investments will begin to be a more compelling investment today because most people fall in love with real estate at an emotional level. However, thinking you'll "get rich quick" by simply buying foreclosures, is the kind of wrong headed thinking that needs to be addressed. Fueled by "self-appointed gurus" who run info-mercials that make it sound so easy, real estate investing takes the ability to understand the risk versus the reward tolerance. Whether investing in real estate, stocks or mutual funds, real estate has always proven to be the best "long term" investment overall. It's my job to convince every prospect we meet today that NOW is the best time to buy. I know what the past and present values are today. What lies ahead is hard to predict. I guess it's better to hope for the best and prepare of the worst. Until next month, here's hoping for the best. Mike Dolan Big Bear's Leading Realtor # 8 Prudential Agent Award 7 time PREA 100 Award 11 time Diamond Circle Award 2 time 5 Year Legend Award (909) 866-6453 (Office) (909) 936-6453 (Cell) mikedolan@bigbearproperties.com
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