house Investing ups and downs
February 5, 2009 by JoelC2009 · 9 Comments
Real estate can go up or down in price. If the current recession has taught us anything, it is this fact.
Making money from the financial crisis is a tricky proposition. The governments and banks have conspired to create the “perfect storm” for savers. There seems no safe haven. With interest rates at all time lows, government bailouts and money supply growth, it is almost impossible to decide on which way to jump.
Even the luxury real estate market is not immune. Luxury property prices are falling faster than any market segment currently. Selling your home at a loss is almost inevitable for just about every buyer in the last ten years.
Home markets will fall along with every other over valued asset. The odds are, prices will overshoot, and this is when the savvy opportunist will strike. But not until that time.
When that time arrives is a matter of conjecture, but one need sto be aware enough to take advantage when the opportunity arises to make money from the credit crisis.
Financial crises come and go, but the overwhelmingly obvious thing about them is the fact that wealth seems to polarize at the top of the money tree. The rich get richer and the poor get poorer.
This crisis is going to be a crisis of epic proportions. Perhaps rivalling the 1929 crash. There will be gigantic drops of houses values around the world.
Timing is vital for re-entry into the market as an investor.