A major asset management company in Orange County is being very aggressive in buying homebuilder stocks.
You may be asking 'why'? at a time when these stocks are so out of favor and beaten down. Perhaps there is a pearl of wisdom here. Most great investors look out 3 - 5 years for their time line. In a scenario like that, a stock that is 70% off it's highs becomes a substantial value.
Eventually demographic trends alone are enough to turn around the real estate economy. So there is the pearl. Home buyers should be thinking exactly the same thing. Consider a purchase when something is out of favor or beaten down and you stand to earn a tidy return on your investment in a realtively short 3 - 5 year time line.
Along the way you enjoy the benefits of homeownership: tax benefits and your own sanctuary.
Thanks for making me Your Orange County Connection for Real Estate.
Best regards.
Michael Caruso, Broker ABR ABRM CRB CRS GRI
2007 President, Orange County Association of Realtors
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