Pessimism and You July 25, 2008Posted by shaferfinancial in Uncategorized.
Tags: half full?, Investment, pessimism, real estate, real estate investment
Not to sound like a refugee from “The Secret,” but pessimism is an emotion that needs to be eliminated from an investor’s psychology. Why? Isn’t it a reaction to reality? Well, no. Currently, the pessimists are having a field day with the real estate market. Indeed, the numbers look bad. But remember the numbers are backward looking, so what they are telling us is that the real estate market in some areas was really bad. Well, duh. But, what those numbers don’t tell us is that real estate has always come back. Let’s be honest, they aren’t making anymore dirt, people still need a place to live, and the emotion of home ownership is as strong as it ever was. Bought your home in 2006, upside down? So what? Where you planning on moving? Probably not. How many people buy a house with a 2-3 year time horizon? The only thing that matters is that you take care of business so you can make those payments. Real estate pricing will come back.
Depending on building up home equity as your retirement plan? Yes, I know that is the plan for the majority, but it is just dumb. Now we see why, as you watch it disappear.
Less than a year ago I made a real estate investment. It is about to pay off handsomely ahead of schedule. How can this be, the real estate market is for fools? Nope, many people are making huge profits in real estate, just not the pessimist. My REIT went up 11% last year, plus paid out 6% in dividends.
Money is made is any market, just not by the herd! Call me or e-mail me email@example.com if you want to learn about building wealth the way the wealthy folks do!