Invest now, because there are 5 indicators the crash is coming.
That’s right, I’m saying now is a good time to invest in real estate, because the crash is coming. Ask anybody who’s been actively investing in real estate for a good length of time, that person will probably tell you that anytime you start is a good time to start. It is my personal opinion that now is a great time to get started, just like if you started in 2007. Here’s why.
If you were just getting started in 2007 you would be learning, studying, saving and getting your credit line looking really good. Maybe you would have invested in one or two properties, or done a wholesale, or a flip. And then the market crashed; yet you would be perfectly positioned to start scooping up the low-priced inventory.
Contrary to what the mainstream media is promoting, take a look and see if you see these five economic and demographic indications that that a perfect storm on the horizon. Will it be this year? Will it be next? Most likely a crash by 2020.
The perfect storm is a combination of five story lines arching at the same time.
Baby Boomers are downsizing and not spending! The largest American generation has peaked, and has finished its hay-day of spending, and is now moving into… OMG— (That’s where we should be investing!)
The Wall—the symbol of America divided, Red against Blue, otherwise known as Trumped-up politics. As the nation remains divided, what will finally cause this storm to erupt?
The Bubble—yes, without even recovering from the zombie houses in the neighborhoods, we are in a mad rush to build more, and more houses, and the prices are skyrocketing! Renters are angry, and the bankers are happy again. Despite the lessons learned in the last decade, mortgage companies have resumed offering low interest, no-principle teaser loans, which will lead us straight back into a financial crisis.
College Debt—it’s huge! And now reports are saying that college degrees are particularly unsuccessful, out of date, and of course, over-priced. College graduates are under-qualified for today’s workforce, and today’s young can’t afford the starter home in many desirable cities.
Private Debt is estimated to be $140k per every person in the US. With no equity in their homes, personal bankruptcies, and forced from their homes, property foreclosures will resurface stronger than ever. Without income stream from taxes, many municipal, county and state governments will be forced into default.
Real Estate is the axis of the American economy. You can position yourself to take advantage of the market. There’s still money that will change hands, it always does. It will be the great re-positioning of money, just like in the 1930’s. When the value of real estate falls, the US economy falls just like humpty-dumpty off the great wall. Be ready with your picks and shovels, and scoop it up.