THE PRESIDENT’S CORNER #5 The View From Here
THE PRESIDENT’S CORNER
Larry Underhill
THE VIEW FROM HERE: There are two fundamental ways to observe the real estate market. You can take the short view or the long view.
The long-term projections for Lodi-area real estate are just as rosy as ever! Demographers estimate that a full 25% of the state will live in the Central Valley by the year 2050. Over the long term, prudent investment in local real estate is as close to a no-brainer as an investor can come.
An elderly client of mine had purchased a handful of single-family homes and duplexes 25 years ago in a little town called Fremont. Needless to say, his modest investment made him a multi-millionaire…over the LONG term I met him when he decided to do a series of 1031 tax-deferred exchanges to move his real estate portfolio to the Lodi-Galt area. As he became familiar with our market, he exclaimed, “This is the next Fremont!” He recognized what many locals fail to see.
The long-term benefits of owning real estate are not limited to the Lodi area. In his bestselling book The Automatic Millionaire Homeowner, author David Bach says, “How can I be so confident about the real estate road to riches? Well, the fact is that U.S. real estate values have been going up steadily for more than four decades--an average of 6.3 percent a year since 1968, which is when the National Association of Realtors first started keeping track.” The long view, buying and holding real estate for many years, is beyond promising. It’s great!
THE SHORT VIEW: Homes are more affordable than they’ve been in years. Interest rates are hovering at record lows. Sellers have adjusted to the realities of the marketplace and are more flexible on price and terms than I’ve seen since the mid-‘90’s. Buyers are gaining confidence as they see that the sky isn’t falling and as they shift their thinking to the long view. In short (pun intended), it’s a great time to be a Buyer.
THE RULE OF 72: Take any interest rate and divide it into the number 72. The answer will give you the number of years it will take to double your investment. Based of the National Association of Realtors’ documented annual appreciation rate of 6.3%, this indicates that the home you own today should double in value in a little less than twelve years. With this in mind, just how important is the short-term real estate market?
If the last paragraph is true, wouldn’t it be good to own more than one property and reap the long-term benefits that come with it? Real estate investment is the best way I know for that average American to build long-term wealth with relatively low risk. For further information on this subject, read Bach’s book or call your favorite Realtor. Your Realtor can show you how to systematically build a real estate portfolio that can multiply your net worth many times…over the long term.
Larry Underhill
THE VIEW FROM HERE: There are two fundamental ways to observe the real estate market. You can take the short view or the long view.
The long-term projections for Lodi-area real estate are just as rosy as ever! Demographers estimate that a full 25% of the state will live in the Central Valley by the year 2050. Over the long term, prudent investment in local real estate is as close to a no-brainer as an investor can come.
An elderly client of mine had purchased a handful of single-family homes and duplexes 25 years ago in a little town called Fremont. Needless to say, his modest investment made him a multi-millionaire…over the LONG term I met him when he decided to do a series of 1031 tax-deferred exchanges to move his real estate portfolio to the Lodi-Galt area. As he became familiar with our market, he exclaimed, “This is the next Fremont!” He recognized what many locals fail to see.
The long-term benefits of owning real estate are not limited to the Lodi area. In his bestselling book The Automatic Millionaire Homeowner, author David Bach says, “How can I be so confident about the real estate road to riches? Well, the fact is that U.S. real estate values have been going up steadily for more than four decades--an average of 6.3 percent a year since 1968, which is when the National Association of Realtors first started keeping track.” The long view, buying and holding real estate for many years, is beyond promising. It’s great!
THE SHORT VIEW: Homes are more affordable than they’ve been in years. Interest rates are hovering at record lows. Sellers have adjusted to the realities of the marketplace and are more flexible on price and terms than I’ve seen since the mid-‘90’s. Buyers are gaining confidence as they see that the sky isn’t falling and as they shift their thinking to the long view. In short (pun intended), it’s a great time to be a Buyer.
THE RULE OF 72: Take any interest rate and divide it into the number 72. The answer will give you the number of years it will take to double your investment. Based of the National Association of Realtors’ documented annual appreciation rate of 6.3%, this indicates that the home you own today should double in value in a little less than twelve years. With this in mind, just how important is the short-term real estate market?
If the last paragraph is true, wouldn’t it be good to own more than one property and reap the long-term benefits that come with it? Real estate investment is the best way I know for that average American to build long-term wealth with relatively low risk. For further information on this subject, read Bach’s book or call your favorite Realtor. Your Realtor can show you how to systematically build a real estate portfolio that can multiply your net worth many times…over the long term.
Labels: Long View, Short View
posted by Larry Underhill at 14:18
0 Comments:
Post a Comment
<< Home