Investing in real estate is beneficial during turbulent times.
From my 21 years as a real estate broker, I can verifiably tell you why.
Markets and industries are reliably cyclical. They're up. They're down. They're sideways.
Much of that has to do with supply and demand of raw materials, products, services, etc. For example, as of today, the shortage and resulting cost of petroleum-related fuel is causing a wave of instability.
Much of that has to do with supply and demand of raw materials, products, services, etc. For example, as of today, the shortage and resulting cost of petroleum-related fuel is causing a wave of instability.Other reasons can include socio-political trends that affect certain markets and industries that have a ripple affect on other markets and industries.
Historically during these turbulent times, investors and stockholders have had some huge losses. Some people lost just about everything.
Do some of these trends affect real estate? Of course. It's fairly clear from the historic real estate market crashes in our history that socio-economic trends affect the value of real estate.
However, and this is the biggest take away from reading this post that I want you to hold firm - NO ONE CAN TAKE REAL ESTATE AWAY FROM YOU.
When stocks take a dump, you lose them. Investment portfolios can financially vanish.
Real estate may lose its value during a downward trend or crash, BUT IT'S STILL THERE. Sitting on the ground. Tangible. Visible.
Some of you may say "well, you can lose real estate too if you get foreclosed upon". Sure, that's true. IF you allow the equity in the property to either slip away from you, or you screw around with it too much. But if you don't, you should have no worries. Especially if you prepare like Suze Orman recommends and make sure, AT ALL TIMES, that you have a minimum of one year carrying costs available and liquid at any time in case of turbulent times. And to quote Ms. Orman regarding not having those carrying costs: "Don't do it, Don't do it, Don't you DARE do it!!"
And here's another life lesson I'll share - You can create new stocks, new financial products, new currencies (BitCoin, etc.), new products, new social trends, new technologies, etc.
But you can't make new DIRT. And by dirt, I mean property - land. You can build condos and skyscrapers up to the moon, but you can't build more dirt. That's because land is a finite source. And its why it will always continue to gain in value.
That's why, when asked my opinion, I always tell clients - BUY THE DIRT.
That's why, when asked my opinion, I always tell clients - BUY THE DIRT.In the bigger picture, through all trends up and down, it will always keep its value.
And once again - NO ONE CAN TAKE THE DIRT AWAY FROM YOU.
Take this advice from an Old Fart!!
Now go play nice.......
Ralph Gorgoglione - Broker / Realtor
Metro Life Homes / BRE #02009317
(310) 497-9407 / (800) 591-6121
Web: metrolifehomes.net
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