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A piece of dirt or the dollar?

By
Real Estate Agent with Century 21 Agate Realty

I would like to get outside opinions in these uncertain times.

We all know the value of the dollar is droping like a rock with no end in site.

We also know the real estate market is slow and effected by the economy.

I have heard people say sell and get out before its too late and other say hold on to your real estate.

Acquisitions will be harder and harder as more banks fail putting additional constraints on our market. As the fed continues to bail lenders out...our dollar value drops more. It's a vicious cycle that's just in the beginning. 

I do feel that if a property is sold without exchange that the tax burden may be greater than the market adjustment for the future value but what about the owner that is straining to maintain ownership or a primary residence?

Should they consider selling and wait out the market to make a better purchase later? If the value of the dollar is falling will this help maintain our real estate price threshold due to foreign investments...

Any comments of your in site would be appreciated. Maybe together with compiled thoughts and debates we can come to better conclusions of our own.    

Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

I am buying good opportunities for cash flow.  If a property can show me a cash return I think it is a safe haven for cash.  Cash is only good if it can generate more cash, so sitting on it is not working with interest rates so low.  The low dollar value will continue to put pressure on energy prices and inflation in general.  Real estate is normally a hedge against that and in this market will be as long as the property has cash flow. 

Jul 14, 2008 04:43 PM