In the 1970's we had renters and owners. A VERY noticeable line. Loans were not so easy to obtain and buyers had to have skin in the game (down payments). Bill Clinton changed that for the worse (although George W. Bush took the hit for Clinton's bad policy on real estate). Now, investors are buying up foreclosures from what I can see at a ratio of 4-1 over "traditional buyers" and they are NOT buying to "flip" like they did in 2004 and 2005. They are buying to HOLD.
Real estate will out perform the stock market as we are on the way OUT from our crash of 2006 and 2007, Wallstreet is on the way IN. Those investors are now shifting back into real estate (the smart ones are)! Want to know why? Take a look at what has happened in the past 100 years! Real estate always wins. You buy $100,000 worth of stock. It crashes. You have a worthless piece of paper in your hands. You buy real estate, it crashes. You have a tenant giving you income. The market comes back, you make your money. It is CERTAIN the value of real estate will rebound. The Wallstreet executive parachutes out with his golden umbrella with your $100K in his pockets so his landing will be soft!
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