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Real Estate Speculation – Boom – Bust – Just Insanity

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Posted by Martin Armstrong - Armstrong Economics

on Tuesday, 18 April 2017 07:32

Barlow-AdQuestion: What if you find yourself as I do with real estate being the MAJORITY of your portfolio?

Answer:

""If you have the bulk of your assets in real estate, then one way to keep them is to run out and get a 30-year FIXED mortgage now while you can. You have sold the risk to a third party and it is now their problem. You have the cash and wisely use for investment into other movable areas."

"Real estate depends on how far down the rabbit hole we go. If government does not blink and it just keeps raising taxes trying to support a system that is unsustainable, then we end up in the full crash and burn and you are compelled to walk away from real estate. Hopefully, with education understanding the past, we can for once avoid the same outcome and advance in this learning curve of civilization.

Vacation properties are the worst to survive. I bought such a place to live in at about 50% of its 2007 high. So while high-end properties in cities were rising, vacation spots on the beach declined. I wanted beach front. So understanding the cycle helps tremendously for entry and exit points.

The risk of mortgages declining is real. As governments get in trouble, long-term confidence starts to decline...."

...more in this comphrensive article by Martin HERE

 

...related:

Michael Campbell & Ozzie Jurock more short term: Hot Properties: A Normal Spring Market?

 


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