This is one of the most amazing buying opportunities in over a decade. If you've ever considered investing in real estate but were afraid to pull the trigger because of high prices, YOUR DAY HAS COME!
Have you seen the housing data lately? Talk about blood in the streets, almost every home builder that is publicly traded in the stock market has hit a new 52 week low in their stock price this week. There is even talk that Beazer homes may go bankrupt. These are absolutely brutal times for home builders and for homeowners trying to sell their properties. There is another side of the coin however...a side that can make the participants a boat load of equity (CASH)!!! I've said this over and over, buy low and sell high. This market is priced to perfection for the investor with limited investment capital. Home builders have such high inventories, that they are practically giving them away. I've seen incentives that would just blow your mind...I'm talking about offers of a new car with home purchase, a swimming pool, first 6 months of your mortgage paid for you, it just goes on and on.
I'm starting to see home builders open up their doors to investors once again. During the appreciation cycle or "seller's market", investors were having doors slammed in their faces and were looked at as pariahs, responsible for the destruction of neighborhoods and the cause of overinflated pricing that kept families from being able to afford an entry level home. Investors, however, have always made up 25% of the buying public and when you say no to the investors, you're really allowing a potential 25% correction that in time will hurt the builders, as we see today. Saying "no" to the investors is not the only cause for a drop in home sales but it does make a substantial impact over the long term market cycle. Those investor bashing days appear to be behind us in this equity crushing sign of the times. Investors are now looked at as saviors and are welcomed with open arms with hopes of saving the day....which they will.
Miss this real estate buying opportunity, and I guarantee you will regret it. The if I would've, could've, should've mantras will ring loud 6 to 7 years from now when all of today's purchases have produced double and even triple digit percentage returns. History has shown that property values typically rise 3 - 5% per year but properties purchased in desired locations during the lowest part of a market correction can see values rise 100% to 200% in the following up cycle. You can either be in it to win it, or sit back and watch opportunity depart into the fog of ignorance.
Saturday, September 8, 2007
Tuesday, September 4, 2007
The SECRET Dance Between The Stock Market And Real Estate
The Secret...I've spent a considerable amount of time studying current and past Real Estate trends, economic statistics, and all facets of the Stock Market. As a result of years of study, I've found something that I think my readers will find very interesting. There is an absolute inverse relationship between the Stock Market and the Real Estate Market.
The rich get richer for a reason. They understand money better than the masses and make financial moves that typically yield the highest returns possible from their investments. The #1 way to accomplish this in the Stock market and the Real Estate Market is to buy low and sell high. I'm sure this concept isn't new to most of you but did you know there is a predictable cyclical shift of cash out of the stock market which goes directly into the real estate market? Did you also know there is a predictable cyclical shift of cash flow out of the real estate market back into the stock market?
The stock market like the real estate market goes up and down. Some may find it a coincidence that the stock market is usually at its highest high at the same time the real estate market starts to crash and that the real estate market is at it's height when the stock market is experiencing a substantial correction. I'm here to tell you that it is no coincidence. When the stock market surges to higher highs, the smart money starts to liquidate their positions thus locking in their profits before the market corrects and takes it back. When you're sitting on a lot of cash, your money isn't growing. The wealthy will then look for alternative investments that will produce the highest potential returns. A down real estate market presents a great opportunity to buy low and eventually sell high in the next real estate up cycle. So that's where their capital goes. This will in turn result, over time, in a stock market correction. By the time the stock market hits it's bottom, the real estate market begins to hit it's highest high in the cycle. Properties are then sold at the high for a substantial return and placed back into the stock market because the stocks are trading at a huge discount. This is the Secret dance between the Stock Market and Real Estate.
The rich get richer for a reason. They understand money better than the masses and make financial moves that typically yield the highest returns possible from their investments. The #1 way to accomplish this in the Stock market and the Real Estate Market is to buy low and sell high. I'm sure this concept isn't new to most of you but did you know there is a predictable cyclical shift of cash out of the stock market which goes directly into the real estate market? Did you also know there is a predictable cyclical shift of cash flow out of the real estate market back into the stock market?
The stock market like the real estate market goes up and down. Some may find it a coincidence that the stock market is usually at its highest high at the same time the real estate market starts to crash and that the real estate market is at it's height when the stock market is experiencing a substantial correction. I'm here to tell you that it is no coincidence. When the stock market surges to higher highs, the smart money starts to liquidate their positions thus locking in their profits before the market corrects and takes it back. When you're sitting on a lot of cash, your money isn't growing. The wealthy will then look for alternative investments that will produce the highest potential returns. A down real estate market presents a great opportunity to buy low and eventually sell high in the next real estate up cycle. So that's where their capital goes. This will in turn result, over time, in a stock market correction. By the time the stock market hits it's bottom, the real estate market begins to hit it's highest high in the cycle. Properties are then sold at the high for a substantial return and placed back into the stock market because the stocks are trading at a huge discount. This is the Secret dance between the Stock Market and Real Estate.
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