Once again, people with cash will NOT overpay for something when the purchasing power of all their competition has been diminished by higher rates. Not only that, but people with cash will want to preserve as much of it as possible when rates are high (and cash is dearest) so that they can earn a return on it.
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+1! I totally agree. I can’t wait for the higher rates to come. But it looks like it’s going to be a while. 🙁
[quote=flyer]Agree CAR and SK, that with the ever-changing dynamics, people, especially those who have purchased in recent years, should be extremely wary of considering real estate a “sure thing,” when it comes to their long-term financial solvency.
As a lifetime real estate investor, it’s clear to me that, some elements point to a continuing escalation, many do not, and only time will tell.
In the meantime, I think it’s very important to have diverse financial resources accumulated for retirement (and lots of them–if you want to survive) other than property. At least, that’s been my plan.[/quote]
As usual I totally agree with you flyer. It’s going to be increasingly important to be very well diversified heading into the future. Of course people with guaranteed pensions that they can’t lose including medical care are really fortunate but most people heading into the future won’t have that luxury.
I totally agree with you flyer it’s essential to be very well diversified and not have all your “eggs” in one basket. I’ve seen too many people in the past that were too concentrated in real estate, the stock market, or other assets and got crushed at one time or another.
For me, the issue hasn’t just been making money but as important is keeping it and also making it grow into a bigger pot. That’s not always so easy for today’s investor…especially if they aren’t diversifying properly and interest rates stay manipulated at extremely low rates.
Lately I’ve seen people being kind of forced to “chase” returns. Some are good calculated investments. Others I’ve seen is a total “gamble”.
