To Buy Or Not To Buy?
By: To Buy or not to Buy…that is the question”
Business follows a recognized cycle. Boom follows bust just as surely as Spring follows Winter. I am writing this at a time when the press is so negative about real estate that it pains me to read the newspapers. However, as we all know the media exists to sell papers not to provide a balanced perspective to the readership.
Let’s just take a minute to consider an alternative point of view. Homes are made to house people and does anyone really expect the population of the United States to start shrinking? Of course not! In fact, just recently the US population passed 300 million. Our country has the third highest population on Earth and is projected to reach 1 billion by the end of this century. (So you’d better visit the polar bears now.)
I can say with certainty, that many things will be in demand, one is housing.
Of course there are areas of the country that have been overbuilt. Speculators do this. However, instead of shying away from real estate completely or being paralyzed by fear from negative press, consider the old investment adage, “Buy when blood is running down the streets…..”
While this correction is taking place, I truly believe that we are being presented with an opportunity and we will look back and ask ourselves…“How could I have been so blind as to not comprehend that I was living through one of the most fabulous opportunities to purchase quality real estate at massive discounts?”
The Carolinas in particular are on the front end of a wave of population growth.
Forecasts are very clear that boomers will either relocate or purchase a 2nd home in affordable, temperate climates. In short, we are at the front of a Tsunami of housing demand, the like of which has never been seen since the post war period.
Don’t let fear get in the way of making great investment decisions.
During inflationary periods, the smart investor borrows money and buys assets. As time passes, this inflation causes the debt they have borrowed to devalue compared to the assets they hold. Think about that. Ask yourself, what did $100 buy ten years ago? What does it buy today? See? The assets you “bought” have appreciated, but you’d still only “owe” $100.
Interest rates, for the moment, have not yet reacted to the inflation building up in our economy. Now is an ideal time to consider a fixed rate type of loan, purchase quality property and profit from the results. After all you buy real estate and wait, you don’t wait to buy real estate.
