Savvy investors look to real estate for safety
Contrary to current real estate analysts’ opinions of a declining real estate market, many people are looking to real estate to protect their investments, instead of the many other financial options out there. Here’s why. For most investors, money in the financial markets is absolutely unpredictable with the stock market jumping 200 points one day followed by 300 points down the next. Many investors are thinking that if they can buy a home at 40% below the market and can wait for the market to right itself, they have an opportunity to make a 30% to 40% profit in several years. Current thinking goes that their investments are safer and more predictable in real estate than in the stock market during the same time period.
Historically, real estate has been a favored vehicle to protect against inflation since real estate value goes up with inflation, coupled with, the benefit of a place to spend get-a-way time or, even rent. With interest rates in the low 3.40% to low 4’s and homes discounted 35% to 40%, savvy buyers are taking this as a golden opportunity.
Don Schaller
Broker Owner
Schaller Family Realtors
Dickson Realty Truckee