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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (73694)5/2/2011 9:13:57 PM
From: Riskmgmt  Read Replies (2) | Respond to of 217803
 
Hi TJ:
Nice post enjoyed seeing all those foreclosure maps.

For someone who believed that chaos is a gift this would be Christmas!!
As someone well versed in this area I wanted to give a different perspective. As you know the property market is local in nature and while this may not apply to all areas of the USA, it certainly will for many.

Consider:
1. Over supply= bargain prices
2. Banks not loaning= cash is king even more bargains
3. Builders not building= little competition
4. Rents rising= better returns
5. buying below replacement cost= lowers risk
6. High rental demand due to 2= no vacancy higher returns

If one wanted to use stocks as an analogy.
There is a big difference between stocks and the stock market. When the stock market drops and becomes out of favor individual stocks can be great bargains. Think 2008, buying good dividend paying stocks at those lowered prices,meant the
returns were greater, risk lower, appreciation more likely.
The property market works the same way.

just some thoughts...........

Regards,

R.