I’m in Orange Beach, Alabama watching the rain and wishing someone would have said all of this to me ten years ago. The most asked question I receive as a real estate professional is “is this a good time to go ahead and buy” I don’t have a crystal ball, I just base my answer on experience. I combine the truthful facts based on past events, amount of available inventory, the ease of obtaining financing, interest rates, and the growth of tourist bringing the rental incomes. Here is something to think about. The majority of emails I receive from clients and future clients always say:” I’ll know it when I see it”, “when the right thing comes along”,” maybe prices will go down”, or ” when you see a great deal let me know”. Also I hear” find me a deal on a foreclosure”. There really are no such things anymore. Here are the facts. In 2003 a three bedroom condo gulf front was selling in the low $200,000’s and generating $15,000 to $18,000 gross rental revenues on average. Today that same unit would be priced in the the mid $400,00’s and generating around $40,000 in gross rentals. Even with the ups and downs we experienced in the past twelve years real estate has held it’s own as a good long term investment.
The real risk is that you miss the enjoyment of life on the gulf coast with your family. Remember you can’t vacation on a CD or you can’t watch the sunrise or sunset from your IRA. You won’t see your grandchildren’s faces on your stocks and bonds. Real estate is an investment that allows you to gather family memories while experiencing appreciation of an asset.
“The most dangerous risk of all – the risk of spending your entire life not doing what you want ON THE IDEA you can buy yourself the freedom to do it later” !!