Sunday, October 16, 2005

Real Estate Investment

Los Angeles, Orange County California, Las Vegas, Boston, Manhattan and Miami; What do they all have in common? Controversy in the housing market. For the past 3 years naysayers have been predicting the bust of the assumed housing "bubble". Conversely for the past 3 years investors have been realizing that this is not the year the sky will fall and have been cashing in on the greatest, "little man" money grab since the dot com days. I personally do not care if these markets crash or soar I understand that there is money to be made either way.

I wish to encourage anyone reading this to realize that life is a cycle of cycles. All investments are cyclical and the cycles are what should be studied. No matter the investment, learn the vehicle(stocks, land, gold, businesses) and then look to understand the cycle.

Avoid various mistakes such as opening a bakery at the height of the Atkins diet. Wait out the diet cycle and look to attract at the end of the cycle. By the way Atkins is a pretty good diet, if you have the will power. Another example would be to avoid investing in companies that hit their 52 week high. This is a general rule of thumb and rules were made to be broken. You can wait for a dip in the price if you love the company and then make your move. This goes for the housing market as well. The boom of the past 5 years is not only cyclical but regional. Do your homework understand the cycle and then you will begin to understand how you can make money during the booms and during the busts.

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