Are You Waiting on the Sidelines?
by Bill Bronchick
Deja vu - this is 1988 all over again. Are you sitting on the sidelines, or are
you in the game, buying up bargain properties? Time Magazine ran a cover story
article this week on the housing market, which quoted me about the opportunities
of buying when things are down:
http://www.time.com/time/magazine/article/0,9171,1661679,00.html
Many investors are waiting on the sidelines of this real estate bust for things
to get better. They will… eventually. While the news is mixed on when the next
boom will happen, they all agree on one thing - it will boom again. Population
explosion from immigration and demand for U.S. Housing will continue on a steady
pace for at least 40 years. Real estate doesn’t boom and bust, it just comes and
goes in waves, causing a doubling in prices every time around.
Many are sitting on the sideliness waiting for the green light to buy, and this
may not be the best idea. Bargains are everywhere, and interest rates are still
cheap.
The federal reserve cut the funds rate by 1/2 percent today for the first time
in 4 years. The fed rarely does anything like this once, so expect further cuts
ahead. What does this mean for investors? Lower rates means more buying power,
which may stimulate more buyers back into the market. If the fed continues in
this direction, we could see an earlier recovery of the market, and those that
wait it out may lose out on bargains!
When the overwhelming news is negative, that generally signals the bottom of a
market. If you are waiting until TIME magazine cover says the market is
rebounding, it’s a mistake. By the time the media signals the green light, it
will be a year too late!
Bio:
William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney,
author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real
estate since 1990, having been involved in over 600 transactions. He has
appeared as a guest on numerous radio and television talk shows including CNBC
Power Lunch. He has been featured in Who's Who in American Business, Money
Magazine, the Los Angeles Times and the Denver Business Journal. William
Bronchick has served as President of the Colorado Association of Real Estate
Investors since 1996.