Real Estate- Why It Is A Great Time To Buy
Any discussion of the real estate market in the last few years has been couched in terms of doom and gloom. From massive inventories to falling prices, there hasn't been much of a bright spot. Having said that, things always turn around at some point and it is hard to imagine a better time to buy than now.
To make out like a bandit on an investment, you need to be a contrarian thinker. One need look no further than Warren Buffet who just sunk billions into buying a railroad. If that isn't contrarian, I don't know what is! Well, the same can be said about real estate. The key is to focus on the big picture. Let's take Las Vegas as an example.
Las Vegas was one of the hottest movers and shakers when real estate was booming. The market was appreciating at more than 25 percent in some years. That is simply staggering. Well, the market has corrected just as fiercely as it shot up. Home values have dropped more than 50 percent from their highs.
Given this huge drop, who would possibly want to buy into the market? Well, me! Yes, the market is absolutely ugly today, but what about five to ten years down the line? Values are going to come back. Most economists are pointing towards 2012 as the year we see strong job growth and the full recovery from the economic mess. Okay, that is only two years away. Let's say it takes five years for real estate to bounce back in Las Vegas. If I offered to sell you home for a couple hundred thousand dollars and then told you that it would double in value in five years, what would you think? You would think that was one great investment!
Ah, but what if things continue to go bad? What if values continue to drop? Well, then we are going to have far bigger problems in this nation. It would be the Great Depression all over again, and nobody would be safe. All indications are, however, that such a future has been avoided. Given that, it is time to jump back in to the real estate market!