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Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
THEY DON'T RING A BELL AT THE TOP!
I can not tell you how many times people who pretend to know answer my question of "How does one know when the real estate market has peaked and prices are headed down?" with the following: "Oh, you can see it right now. Prices are starting to go down and it's going to get much worse."
So, does that mean taht they sold in 2003 or 2004 when the prices had reached dizzying heights? A few actually did because they were scared or because they wanted to book those gains. And, had they, they would have missed 12-24 months of some of the most spectacular appreciation ever. They will never see that again and there they were on the sidelines. And, despite what they say, they remain pissed.
Anyone who says that they "cashed out" last year is probably lying. Heck, no one sold last year because their expectations were for more gains. So, if they tell you that this is the top and one should get out now, how can you possibly do that when so many others are selling right now as well. You had your chance. These are the people who want to sell when the crowd is selling and buy when everyone else is buying. However, all real estate mistakes are cured by time. Ask anyone who owned houses in Southern California during the recession of 1991-1995 and didn't sell.
There are some who say that seller must reduce their prices to more realistic levels. There is some truth to that! But, could it be that buyers want lower prices so they can get in? Sellers do not have to lower their prices. They can simply allow times to pass and let the market come to their price as it has always done in the past. That's a stark contrast to stocks.
Many are rooting for the housing market to collapse, for some reason. And, if it does, Landlords will get exactly what they finally deserve: Namely a huge pool of qualified tenants fighting over fewer and fewer vacancies in which rents will sure go up, making their rental units worth more and more!
- How Different Investments Did This Past Week
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- Market Wrap Links For Week Ending 7/18:
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- Municipal Bond Funds Take The Spotlight
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- Millionaire Now!
- The 7 Steps to Millionaire Now!
- Build Your Financial Plan
- RETIRE RICH: Survival Guide
- ASSET ALLOCATION MODEL
- THE BIG ROLLOVER IS HERE
- THE END OF THE GRAND SUPERCYCLE?
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