Values tumbled in the first quarter of 2008. The median price for a single family home dropped 7.7%. That's the largest drop in 29 years, according to Kathleen M. Howley of Bloomberg.com. If you have a $150k house, there's a good chance you just lost about $11k of equity in your home.
While this freaks a lot of home-owners out, it should excite investors. Real estate investors know that prices are dropping. This means that opportunities for cash flow are abounding. While people are losing their jobs, being raped at the pump, and struggling to keep up with their bills, wise investors are building income through solid cash flowing rental properties.
What about you? With the dollar on the decline, what are you doing to secure your retirement? I've spoken with so many investors over the last several weeks and months who have lost money in their 401k. Do you have your money in something that will even yield a return? If you lose value in your property and in your retirement, what will you do?
Start thinking about how you're going to take the next step. Don't wait for money to start growing on trees, because with the economic outlook these days, you may not have the money to water that tree anyways. (just kidding)
Seriously, think about ways to invest in good property now, while prices are down. Don't let your retirement savings slip away while you aren't paying attention.
(If you're interested in looking at how the numbers should look when you're buying a property, check out this post. It breaks down the numbers on a property here in Indianapolis and compares it with one in California.)
Tuesday's Tip: Money doesn't grow on trees. Invest wisely while the market is down.
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