Real Estate Should Be in Your Investment Portfolio

As I continue to analyze the Real Estate market, I find myself thinking that we may be letting investment opportunities slip through our fingers.

The Wise Investor Starts Looking Now

The Wise Investor Starts Looking Now

Today’s opportunities most likely will not last forever. If you include real estate in your investment portfolio than take advantage now. Sure, several real estate markets will still undergo a continued decline for probably another year with anticipated price drops in the twenty percent plus range, but it is just as with good stocks and going long, the real value deals are reaching bottom right now.

As I continue to analyze the Real Estate market, I find myself thinking that we may be letting investment opportunities slip through our fingers. I can’t help but think that perhaps twelve months from now we will be looking back and saying, “if only I had invested then, look at what I would have now.” OK, I know what your saying, what is he talking about now? This is the guy who has been telling us that the bottom is still below us and we should be cautious at best.

You are right, that is exactly what I have been saying, I still maintain we should always be very cautious and do our homework before investing. It is this homework that has me thinking down a slightly different path right now. We are seeing, for the first time in many years properties that are being offered at very low prices. In some cases there are properties that have been reduced by fifty percent or more in just one year. I don’t care who you talk to, a property like that is a bargain, any day of the week. I have seen many single family and multi family properties hit the market at prices that truly make you do a double take.

I have also been saying for sometime now that we are going to begin to see commercial Real Estate hitting the market at very affordable prices. Commercial may take a hit in the short run, but overall our surviving businesses, and new businesses hitting the market will make for a healthy economy once more. If you couple the bargain opportunities available with the price of money, (interest rates) this is the time for wise investors to start including Real Estate in their investment portfolios. Our market is down, there is no doubt about that, but with a down market we should be looking at opportunities, they are now all around us, daily.

Do a little research on your own. Look at the homes that are for sale in your own neighborhood, do you see any bargains? I bet you see many of them. If you are looking at a single family property at a bargain price then do a little math. Ask yourself what would it rent for? Check the interest rates being offered today, figure how much the payment would be with a twenty percent down payment, add taxes and insurance back in and then subtract that from the rental amount.

The properties I have looked at are starting to show me a return on my investment. I think we are sitting on opportunities in our own backyards right here on Amelia Island and North Florida, but we can’t see it due to all the negativity we keep hearing on a daily basis. There are investors right now buying Real Estate in California and Florida (two states hit the hardest in foreclosures and short sales), because they know that when public confidence turns around they will be the ones sitting on the front row. When public confidence does turn, and it will, do you think prices that are now available or interest rates will remain low? Absolutely not. We will begin to see prices and interest rates rise.

My Real Estate advice for you is to start looking for bargains and don’t let them slip through your fingers. Become a wise investor and look beyond today!

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2 Comments

  1. Rick

    True Nick. We're seeing opportunities that have some serious promise.

  2. Rick

    True Nick. We're seeing opportunities that have some serious promise.

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