The fate of real estate
- We see real estate heading for another downturn…
- Fewer jobs have been created
- Areas where cheap real estate exist
- As conditions in the world get more tense…
The fate of real estate around the world is not looking good. Outside of some major metropolitan areas where prices keep going up, the rest of the world will see that all of the gains since the bubble burst a few years ago may be lost again.
The real estate market will see prices come back quite a bit in popular areas, but other out of the way regions will not do so well. Either way, we see real estate heading for another downturn as foreclosure activity is picking up and that will drive prices down.
Also, fewer jobs have been created, even though there are numbers coming out that the media tells you are good, less than half of the jobs that were lost have been replaced. So, if this continues this will put even more pressure on the real estate market.
Areas where cheap real estate exist are hardly the desirable areas where middle class families want to move, nor are there any jobs in those areas. So, if you have a job you can do from anywhere go out and look at the cheapest real estate you can find in a safe area. This may be in rural areas.
You will find that as conditions in the world get more tense, rural areas will be safer, especially where neighbors help neighbors. You do not want to be in a big city anywhere in the world when an economic crisis hits.
QUESTION: What should readers take away from this message today?
ANSWER: That even though there are many people all excited about real estate – mostly people selling it – the rising prices are an illusion and the next wave is about to hit the shore.
QUESTION: Why is this information timely?
ANSWER: This information is timely because we are near the end of the warm weather selling season and Realtors will have a big push on to convince you to hurry up and snap up those deals before prices go even higher.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: If you are thinking about buying real estate we would urge you to rent for at least another two years. You’ll be glad you did.
COMMENTARY: The best of all worlds with regard to real estate and your safety is to figure out a way to work from home. This means having employment that does not keep you stuck in any one location. Working from home and renting – being mobile – will be the ideal situation. This will become more critical as the years go by. In the meantime, you may need to keep your day job and use your free time to reinvent yourself. Remember, the more stuff you own, or rather owns you, only limits your options as far as being mobile and getting out of harm’s way when things far apart.