That's a concern we're all asking today. Why? Because of the many stock market investors who speculated in property, the difficulties surrounding sub-prime loans with the resulting foreclosures and bank failures, and falling home prices.

If the late Dr. David Schumacher, my mentor for the past 10 years and writer of the now-famous book, The Buy and Hold Strategies of Real Estate, were still around, I know what he would say because he said it over the past downturn in 1990-1995. He would reveal to not worry. This really is only temporary and the main normal cycle of real estate. real estate agent in st. andrews

It generates bargains that could benefit you. This cycle has been happening since Montgomery Ward began offering homes for $1,500 through its catalogs. As sure as the sun rises and the seasons come and go, property could make people who own it rich over a period of time. He would add that now is the best time to get great deals in real estate.

The Real Estate Cycle

Real-estate remains the most effective investment possible. It always has and always is going to do well in the long run.

This is actually the fourth property cycle I have now been through and none of the downturns were fun. However, when you have patience and look at the long term, your property should go up in value more than some other investment. Don't treat property as you might treat the stock market, worrying about the ups and down.

Since 1929, property moved up an average of five percent per year; in the event that you stay away from well-known non-appreciating areas like Detroit, it's similar to seven percent a year. At that rate, properties will double in value over 10 years with compounding. Put in a federal tax good thing about 28 percent plus state tax deductions, the depreciation write-off for rental property, and the eventual pay-down of the loan and you have a technique rich people have always used to build up wealth.


Within the last 30 years I've watched many flippers who buy, fix up, and sell. I do not know many who've much net worth or are wealthy due to flipping. It is simply a very risky way to create money.