Who is still King?
I know many in America right now have taken a real licking in real estate . Home owners have lost homes in foreclosure. Many Investors have had to sell income properties at a significant loss at a loss. But I think back through the years and remember selling real estate at a loss and then having to cough up more to cover capital gains than I had net out of the sale! If you are under 40 you won't remember much about why that was...but it had to do with capital gains. Sure I lost on that one and a few others... But you know we then then we had fantastic opportunities to buy other property come our way and at extremely discounted rates from institutions, and with very exceptional terms. We did buy and then we did sell, at a really a good profit when the market returned to better times the 90's.
So why does this matter now?
Well it does matter because as we all know real estate is here to stay. The dirt, the location.......they simply aren't going anywhere. Other than precious metals or jewels.... everything else wears out or disappears. Stocks and other paper investments can literally go away for eternity ...when the companies they represent an interest in, go away. And even gold coins and jewelry can be stolen or lost. And Banks go away too. I don't believe there is more than one bank left in our community that was here 25 years ago. Sure, the money you put in those banks is insured and now at least for a short while, the FDIC has substantially increased that insured amount. But there are still individuals that take a chance and leave way more than they should in one institution. Why do they do this? !!!!
But there is one thing for certain ....Real estate is going no where. The price may, and does fluctuate, but it invariably always it goes up and up and the ceiling becomes higher and higher every decade. And it is virtually literally impossible to steal real estate.
So when your friends and clients ask you what do you think is the safest thing to put their investments in..... you should proudly and assuredly proclaim " Why Real Estate ...of Course!
If you don't believe this precept then you might want to consider another profession.
Long live Real Estate. The King of all investments.
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