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By Dave Robertson
Several months ago, financial guru Warren Buffet was asked how to determine when the real estate market hits bottom. He suggested looking back after a year has passed, and added that he was buying now.
In April 2008, American Express Publishing and the Harrison Group’s Annual Survey of Affluence and Wealth in America revealed that 77% of the wealthiest people in the country believe real estate is a “real opportunity” now. Forty percent said they plan to buy this year.
In a May 6 online piece for the Wall Street Journal, Cyril Moulle-Berteaux, managing partner of NY hedge fund Traxis Partners LP, wrote, “Yes, the housing market is bottoming right now. The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market.” He went on to state that, compared to other housing market slowdowns, interest rates are much lower and incomes have continued to rise.
Moulle-Berteaux conjectured that the supply of available home inventory should drop below five months in 2009; at that point, values will begin climbing. He concluded, “Housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now.”
Is this why you should buy? NO! You should not necessarily be thinking about investment…but it may give you peace of mind. Think about accessing a lifestyle and amenities that will enrich your life, while you are young enough to enjoy them.
This issue (Ideal Living Magazine Summer 2008) features communities with sought-after amenities like hiking trails and equestrian centers. It also explores new career dynamics, entertainment and golf. Discover the more than 175 courses in Myrtle Beach, SC and experience the rich blend of historic, Colonial, Georgian and Victorian architecture in the more than 250-year-old port city of Wilmington (NC). Whether it’s better weather during the colder months or a slower pace of life, your time to seize the day is now. Just do it!
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