SoCal, Florida and certain other areas of the US have a problem: Too many “get rich in two years” real estate speculators. Real Estate has always been a long term investment, unless you are an EXPERT. Unfortunately, many people read a few books, watch a TV show on the subject (Flip That House), hear stories from their friends about how easy it is to make $$ and decide to give it a try. Then they go get a speculative loan, known as an ARM, put a few dollars down, and plan their early retirement. The market takes a dip (it always does, eventually) their rate gets adjusted (“we were gonna sell!”) and the home goes back to the bank.
So much for the “experts.”
It goes up, then it goes down, then it goes up, then it goes down.
Even when the economy sucks for some people, other, like me, are doing just fine. There are no recessions in my business. I have built a better mousetrap.
I see this market as a buying opportunity: Buy on the bad news, sell on the good news. I’m getting ready to buy.
Call me in ten years. I will have made plenty of $$ on the new house by then.
Capitalism has these periodic recessions. Socialism doesn’t. In a socialist economy, the recession is constant and unrelenting, but predictable. I’ll take the un-predictable, anytime.
