- Joined
- Aug 22, 2007
- Messages
- 2,005
Whether Quick-Turn or Long-Term: Real Estate Always Travels In Cycles
Right now, at the beginning of 2016, the Canadian real estate cycle is shifting. In some regions the cycle is improving, in other regions it is deteriorating quite rapidly. This is not the first time, nor will it be the last. However, it is a time of change. Changes to the economy lead to changes in the real estate cycle with MUST lead to:
Changes In A Real Estate Investor’s Tactics
Yes, this isn’t the first time we have witnessed and experienced cycle changes. We are not theorists with great marketing profiles. We are right in the trenches and teach exactly what we are doing, in good times and in tougher times. For those in the hot markets right now, it is important to remember that market slow-downs in other regions can provide you with wonderful lessons of how necessary it is to play both offense and defense with your portfolio choices. In the hot regions many investors begin to believe that they are investment geniuses due to their results. When, frankly, the market conditions have covered-up any of their bad choices or weak fundamentals. The cracks in the portfolio only begin to become to become fatal when the market begins to shift (and it ALWAYS does).
You can look at real estate cycles as being similar to a game of musical chairs- it is fun and exciting when the music is on your side, however, inevitably the music pauses and a strategic investors’ goal is to ensure they are positioned properly when the music pauses. By building a portfolio positioned for both defense and offense it won’t create enough excitement or drama for a TV show – but it sure provides the strategic investor a LOT of time and financial ability to find excitement in all other aspects of my life. So I ask you the big question....
<Read More here>
Right now, at the beginning of 2016, the Canadian real estate cycle is shifting. In some regions the cycle is improving, in other regions it is deteriorating quite rapidly. This is not the first time, nor will it be the last. However, it is a time of change. Changes to the economy lead to changes in the real estate cycle with MUST lead to:
Changes In A Real Estate Investor’s Tactics
Yes, this isn’t the first time we have witnessed and experienced cycle changes. We are not theorists with great marketing profiles. We are right in the trenches and teach exactly what we are doing, in good times and in tougher times. For those in the hot markets right now, it is important to remember that market slow-downs in other regions can provide you with wonderful lessons of how necessary it is to play both offense and defense with your portfolio choices. In the hot regions many investors begin to believe that they are investment geniuses due to their results. When, frankly, the market conditions have covered-up any of their bad choices or weak fundamentals. The cracks in the portfolio only begin to become to become fatal when the market begins to shift (and it ALWAYS does).
You can look at real estate cycles as being similar to a game of musical chairs- it is fun and exciting when the music is on your side, however, inevitably the music pauses and a strategic investors’ goal is to ensure they are positioned properly when the music pauses. By building a portfolio positioned for both defense and offense it won’t create enough excitement or drama for a TV show – but it sure provides the strategic investor a LOT of time and financial ability to find excitement in all other aspects of my life. So I ask you the big question....
<Read More here>
