While the volatility of the financial markets in the past couple of weeks continues to weaken the confidence and trust of the consumer, my advice is veer your attention toward the real estate market. Pricing is at its lowest in five years, and sellers—including banks—are highly motivated to negotiate.
Buyers continue to ask me if property has hit its lowest point; I’m confident it has, but I can’t prove it. My answer to them is this: In just two weeks, intangible assets lost 35% of their value across the board. Real estate, on the other hand, took four years to drop the same percentage. In my opinion volatility is rare in real estate and it’s certainly much less risky over time than the stock market is. Of course, money may not be as liquid in real estate, but given the unpredictability of Wall Street and the current economic worldwide climate, the odds are overwhelmingly in favor of real estate – THE tangible asset.
Buy property for the long-term, and don’t worry. You won’t watch your 20-year investment tank. That’s guaranteed!