When Opportunity Knocks, Trump Says Open The Door
June 26th, 2008 categories: Our Market
Whether or not one is a Donald Trump fan, you’ve got to hand it to the guy- he does know Real Estate. Perhaps an Idiot Savant but nevertheless, a very wealthy one. This past Tuesday evening the Donald and other Real Estate gurus were waxing financial with Larry King on CNN’s Larry King Live about where we are in our current market and what we should do about it. The panel of experts all had the same piece of advice for us mere mortals- don’t miss out on this opportunity to get in on one of the hardest hit Real Estate markets in history. Donald Trump said, ‘If you have money to invest, even if you don’t have money to invest, find a way to buy into this down market’, I paraphrase.
Foreclosures are driving down the price of homes all around the country and of course, there are many bank owned properties that are incredible bargins. Whether we are at the bottom of the market today or will be tomorrow, the market is ripe with opportunity. Listening to the panel of experts the other evening kindled my motivation to get more aggressive in my search for our next investment.
In an interview with the San Diego Business Journal, Century 21 CEO Thomas Kuntz said, “I’m fearful that…the average individual will miss what I think is one of the greatest opportunities I’ve seen in my years in this business”. As buyers wait on the sidelines for the ‘bottom’ of the market, it could very well pass them by. An increase in interest rates can easily erase $20,000 or $30,000 in price reduction.
Before we all run out and buy the first piece of property that jumps up in front of us, we must remember how we got into this foreclosure mess. People bought property with unrealistic expectations of appreciation and the rate of appreciation and took on risky loans that in the end, they couldn’t afford. There wasn’t enough ‘wiggle room’ in their financial plan to be able to withstand the rate fluctuations. Let’s not max ourselves out- figure in a rainy day scenario or if you are looking for a rental, a reasonable vacancy factor. The trick is to not find yourself in a position that you must sell regardless of conditions and you must have a long term plan for the schedule of payments.
The high rate of foreclosures is expected to peak this summer and run its course by year end, said Alan Nevin, director of research for MarketPointe Realty Advisors in San Diego. And, housing will eventually rebound locally, because of a chronic shortage of housing and a strong, diversified economy, he said.
San Diego is short on the supply side when it comes to housing and there isn’t much room for expansion at this point. All of the developable land is virtually developed. Yet, San Diego remains one of the most pristine locations to call home on our entire planet. This will keep San Diego Real Estate a valuable commodity and as our economy grows there will be more and more of a housing shortage.
Timing is everything and we believe this market is timed for buying success today. How can we help you take advantage of this historic opportunity? LOVE Where You Live. We Will Help You Get There.
