Please turn off the media channels! I will say that we are in unprecedented times for sure, however, every several years, like clockwork, there is disruption in the marketplace. This year, there are wild swings in the stock market and Crypto is on life support. There is unrest in Ukraine, fuel “shortages”, supply chain disruptions, high inflation due in part to irrational governmental spending and the list goes on. Not long ago, the news came to us nightly. Now, it is sensationalized 24 hours a day and is everywhere in our faces! Every day the media comes out with something new to create fear. It might be better to keep the television off and watch only selective and trusted news media outlets for your information.
Let’s dig into things a bit
The only one certainty is that everything changes. Nothing stays the same indefinitely. In order for all of us to move forward, there must be growth or there is decline. The growing can be painful. “Winter” is coming in the economy. How do you know if it or what will affect you? Well, this depends on your particular set of circumstances and location. The Fourth Turning by William Strauss is an excellent read on this topic. Click Here For Book.
This past year, 2022, I have attended many different financial conferences. I would like to share with you some of my take-aways. A couple of my favorite speakers are Paul Tudor Jones, Keith Cunningham and Tony Robbins.
Fear and lack of the correct information is the enemy
Listening to general news can be a fatal mistake. Why? “Winter” is not the same in California, as it is in Buffalo or Florida. Likewise, your circumstances are unique and so is your marketplace. The generalization and fear producing information can and likely will freeze your mental state into the inability to make good and rational decisions for yourself, your family and your financial outlook. It can also cause you to make debilitating decisions.
Let’s look at some of my takeaways:
• Nearly 40% of all homes in the U.S. are mortgage free. Click link for full article → Forbes: https://www.forbes.com/sites/
• Banks are really tough on applicants. The process of obtaining financing has become more difficult since 2008. Some products, such as no doc (documents) loans are rare.
• There has been a migration to different communities by individuals and families who, since 2020, have been given the opportunity to work remotely or have had an awakening to their surroundings and are choosing to relocate to areas that fit their needs and lifestyle better.
• Investors are shifting their tactics of investing. By adding more property to their real estate portfolios, they are boosting or creating another asset class to hedge against inflation.
• There is still great liquidity in the real estate market with 30% of properties being purchased with cash in 2021 as people cashed out of their communities to more affordable ones. Click link for full article → . Redfin: https://www.redfin.com/
• The Traditional Markets, stocks, bonds etc. are fluctuating and sustaining losses, however, we were shown that in the long term, the investment remains sound and grows.
• It is important to focus on your own numbers, goals, investments and to plug any profit drains you may find.
• Crypto Currencies are down and since they are a relatively new investment class, it is truly still an unknown commodity in the way of a comeback. Personally, I believe that digital currency is in our future. Is it a safe bet for you now? It might be wise to add to your portfolio, a small investment amount to play in that asset class.
• One of the best ways to insulate from inflation is to create a portfolio that has at least 6 non-conforming asset classes. This creates a buffer so if there are losses in a couple of sectors, there is growth or sustainability in the others.
• Look for new investment opportunities.
• Unexamined assumptions create a lack of optics.
Perhaps now is the time to take some profits from your current property and choose a great investment property or investment opportunity.
How the current craziness around us will affect you, is totally up to you. Be the creator of your life, not the manager of your circumstances. Your state of mind is crucial in times like these. Get resourceful.
Did you know that the publics’ market perception and consequences of a shift lags 18 months when a shift happens.? What is being seen now was put in motion 12-18 months ago. So, theoretically, this is the past we are seeing. The market is rarely stagnant and the cycles although sometimes erratic will always be part of our life. To keep your sanity and financial well being, look forward. As Wayne Gretzky put it so well when asked about his success: “I skate to where the puck will go” It might be time to adopt this for yourself. Look forward to where the market is going because I assure you it will change again.
As your trusted real estate advisor, a real estate investor myself and a resource for my many investor clients, I am happy to offer you a complimentary examination of your property’s value. We can discuss where opportunities may lie dormant or are unrecognized and work on a strategic plan of real estate investing with you.
I am just entering my 25th year in the industry as a full time and very successful Realtor. No pressure to buy or sell anything. Let’s just start the conversation. Knowledge and data create certainty. Let me help you understand the local Savannah Market and the general climate of the United States.
Schedule a meeting with me now!
*I am not a certified money manager. This is a general overview of what I have taken away from many meetings on this subject
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