Since it’s Friday, I thought I’d take a break from the normal stock market news and talk about investing in a different market: Real Estate. So, not much has changed: the economy looks like we’re headed for a recession, credit markets remain tight, and inflation is gradually emerging as a dark cloud on the horizon. However, sometimes opportunity may exist in even the bleakest of markets - even real estate.
Keeping a Watchful Eye
With adjustable rate mortgages continuing to reset in 2008 and a tight mortgage lending market continuing to put pressure on housing prices, it’s difficult to say when real estate will hit a true bottom. However, I don’t think it’s important to buy exactly at a bottom when you are a long term investor. For this reason, I think it’s a good idea to keep an eye on depressed real estate markets like Miami (yes, I was watching CNBC this morning) where Miami Beach condos are literally going for 0.40 cents on the dollar! I think patient investors with capital to invest stand a chance of making some good money in the future. But remember, things are likely to get worse before they get better - so stay tuned.
Tags: Investing