What is You "Investional" Fortitude? (edit/delete)
Opportunities to invest your money come in many varieties. Some are safe, low return situations, while other have more risk and afford greater return on the invested dollar. Some are stable over the long haul, while others can change immediately.
Stocks are a good example of the latter. There are many opportunities in the stock market, high or low risk, and each has the commensurate return. We’ve recently seen how volatile stocks can be with GM and the bottom falling out of its stock price. Real estate has dropped dramatically and is a daily headline in the news, but it has taken years for it to drop to half or one third of its peak value. Stocks can be reduced to a fraction of their peak value in a matter of hours.
Some investors choose gold, silver, or other such investments. While they have seen price volatility in the past, there seems to be stability and growth in that area now. How high will they go? That is anyone’s guess and the guesses change with each article or opinion that you read.
Real estate affords a great variety of investment opportunities. You can buy a cash flow, a depreciable property, speculative property, etc., each with its own benefits and risk. Real estate prices have fallen over the past four years, but it is important to recognize that it took that long for the prices to fall where they have fallen to. The extent of the decline was startling, but it wasn’t immediate. In most cases, the recovery of real estate pricing is just a matter of time. Things will turn and the demand will be good.
Demand is always a driving force in investments. High Demand = High Price. While the financial crisis has limited the number of people that can buy right now, there is still a strong latent demand. The population has continued to increase
while housing starts have been non-existent creating increased demand. In our beautiful region with the wonderful people and other amenities that make it so attractive, demand from people looking to relocate here will rise again in the future when they can structure their lives to be able to leave where they are. That compounding factor makes our area an excellent place to invest in real estate with confidence.
Depending on the amount and objective of your investment capital, it is important to diversify your investment portfolio. Some investments provide cash flow, others create wealth. It is important to recognize what you wish to achieve with your money and make a plan to get it. Investing isn’t for the faint of heart unless you are getting 1% on your money in a safe harbor. If you are putting your money at risk to achieve substantial gains you must have the “Investinal” fortitude to stick it out. Real Estate Investment in Northern Nevada today can help calm your nerves while your money is so invested ... prices are great and the upside full of potential.
There is always risk in any investment. If you lose value with stocks you will have a piece of paper. If you lose value with gold you will at least have gold bars, coin, etc. If you lose value with real estate you have something, and they aren’t making any more of it. There are many types and opportunities in real estate so you should work closely with your agent to find the right match for you. When you do, buy and go forth with confidence… you’ve made a good investment. No gut wrenching today buying real estate in Northern Nevada.
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When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless! Lisa Wetzel and Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472 carsonvalleyland@hotmail.com, www.carsonvalleyland.com
Here are a few of our blog posts ... please enjoy!
Passion ... Inspiration ... What Is Your Why?
Douglas Pop Warner Little Scholars Awards Three Scholarships to Graduating Seniors in Carson Valley
Vacant Lot Myths ... Northern Nevada Land
You Really Don't Have to Be A Jerk! ... More Tales From The Trenches!
Maximizing Your Price As a Home Seller In Today's Market!
Selecting A Buyer’s Agent in Today’s Real Estate
How To Be A Good Real Estate Buyer
Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com
We’ve seen some interesting examples of Price Versus Market Value In Real Estate lately. A property listing at 19.5% below an appraisal completed in the same week the property was listed … and it has generated no showings. The price is definitely right to attract a Buyer, but none have stepped up to date even at that great price! Another example ... a bank-owned property. Banks are quite cautious on their values when they sell, but in this case the accepted sales price was 7.5% less than the Buyer’s loan appraisal. Both of these current situations may seem to reflect a declining market because of the ratio of appraisal to price, but does it? 
