Keepin' It Real, Estate

Quote of the day:
“It's all about sex and territory, 
which are what will finish us off
in the long run.”
--Margaret Atwood, from her poem February

I’ve mentioned before how the daily press seems festooned with daily developments about real estate. The other day there was a story about the imminent expiration of “initial rate periods” for a significant number of adjustable rate mortgages. In other words, those who bought in 2005 with a low 2-year “initial” or “teaser” rate would soon find themselves with higher rates and higher monthly payments--in some cases, much higher.

Let me get this out of the way: You are a brilliant real estate investor. So am I. So is everyone. We’re all brilliant real estate investors. Now I can continue.

The mantra-like refrain we are repeatedly hearing is “I’m waiting until the market turns up.” For those who want to sell real estate (brilliant, all of them), this is a good strategy.

The market may “turn up” in a few months (who knows, really?), but it is much more likely that it will “turn up” in a few years or longer. All of us brilliant real estate investors seem to have temporarily forgotten that, historically, the market can be flat or choppy for many years at a time.

So, waiting for the upturn is good, and we need to be ready to wait a long time.