The stock market ended 2018 down, and what a ride its been especially in recent weeks. Needless to say, people are getting jittery about investing, particularly in big-ticket items like real estate!
Buy more real estate! when stocks fluctuate, real estate tends to be a solid investment that appreciates over time. Even if property values dip temporarily, with a wise seasoned Realtor, you can purchase now and in a few years make a lot of money on.
The banks are basically giving money away! Interest rates remain very low compared to historic averages. That means borrowed money is cheap and it remains a good time to get a mortgage. “Why wouldn’t you finance something you can’t lose your money in,” “It’s almost like the stock market doesn’t make any sense when you understand the real estate industry.”
There’s no doubt that interest rate increases are making homeownership more expensive, and potentially contributing to a cooler market. However, putting current rates in context and showing that they are in fact still low is a comfort for buyers fearing they missed the low-cost boat.
Money can disappear, but property can’t! My Grandmother, past now, and a Real Estate broker, taught me about the lasting value of a property, and today people can live on almost any piece of land. The same can’t be said, for stocks. Real Estate is a hard asset that lasts, essentially, forever. Businesses, on the other hand, can go under leaving their stock worthless, by the way, you “can’t live IN your 401K!”
Look at this from a long term investment view! The stock market was brutal the final months of 2018. This possibly wiped out some wealth for potential homeowners and property investors. I try to keep a broad portfolio of stocks and real estate! My mother told me years ago, “I don’t look at my stocks investments daily, I have confidence in my financial adviser and your Real Estate buyers should have confidence in you!” Short term market swings aren’t something that will directly impact a primary residence.
You should be diversified! Folks that are worried about the stock market fluctuations may actually need to diversify their investments. The day to day performance in the stock market has little impact on Real Estate.
Many people have no company-sponsored retirement plans, and leaving their cash in the bank means constantly losing money to inflation. Real Estate is a good asset for building a diversified portfolio that can withstand the unpredictable changes in the financial markets.
Are you ready to invest now? I do not have a crystal ball, and predicting the future, or waiting for the next perfect moment to jump into upsizing your existing home! Perhaps relocating, or purchasing your first home, I’m not sure there is a perfect moment. However, I can assure you, I have a great network of mortgage brokers to assist us in the transition, no matter what the challenges may be.
The stock market is volatile, but interest rates are expected to keep rising. Meanwhile, more and more young families, veterans, and retirees are in need of homes, especially in spectacular regions like St. Johns County in Florida! So, should you time your deals to coincide with market fluctuations? In my opinion, I don’t think so.
It might be better, but again it also could become a challenge, only the future will tell. I do believe prices will stay strong, and demand, without doubt, will continue to increase.