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Real Estate

Real Estate is a major part of the economy. Whether we are investing in it or buying it for personal use it has the potential to back you wealthy.

Like any other area of the economy or financial matter timing is very important. Just like it is not wise to buy a stock when it has reached new highs, it is the same for real estate. From my own experience and observations the real estate market goes through cycles. After a prolonged period of stagnant prices real estate explodes into a period of expansion where prices can become insanely high until the point is reached and a bubble pops, and prices can plummet. Those unlucky enough to have purchased during the boom times can find themselves “under water” on their mortgage, a financial position where you owe more on the mortgage of the property than you can possibly sell it for. Unfortunately individuals cannot always choose when to buy property for their own personal use because of relocating for job requirements. After a collapse it can take many years for the real estate market to recoup, sometimes even decades.

 

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