This is it!
Sounds dramatic, doesn’t it?
…but this is my way of predicting when the time is right to accumulate a truck load of real estate assets.
It’s so simple, you’ll kick yourself for not knowing this and keeping a tab on it.
Look at this chart…
What do you see?
Remember when we were ranting and raving in 2009 that it was a sensational time to buy real estate, despite what everyone else was saying?
Hmmm… Look where interest rates were back then.
It was a no brainer and we made a killing.
Look at where interest rates are heading now, possibly back to around those levels.
Here’s a principle that you should stick by.
Whenever interest rates are around the 6% mark, it’s always a great time to accumulate real estate.
Now, look back at the chart.
I got started investing around 1995-1996. I had no idea back then how powerful this information was, I simply got lucky.
Back then, interest rates were around 11% and came crashing down to the 6% area.
Yes, the real estate market came back after a significant boom from 1987 – 1991.
The market went sideways from 1991 – 1996, without much happening with regards to growth… a great time to accumulate.
The sentiment for real estate was very negative.
But through that period of 1991-1996, rents were increasing as prices flat-lined. Then interest rates hit a cycle low around 1996 and real estate prices took off.
…They almost doubled in the next 4 years!
Interest rates went up to around 8%, slowing the market down. The real estate market took a breather, paused for a year or so and then continued it upwards movement in 2002 when rates again were at around 6%.
We had another mini-boom cycle from 2002 – early 2005 and things slowed down again. Can you see the pattern here?
Look, I know I’m making it really simple here, and sure, there are a few other factors to consider… But when interest rates are around the 6% mark, it’s good news for real estate investors.
From what I see at the moment, the current period reminds me of more like 1995-1996 period. If I had my time again, I would have bought a lot more property during that period.
I’m not making that mistake twice.
Right now, it’s a great window of opportunity for future profits. There’s a time to accumulate real estate and now is the time.
Sure, I’ve said this in the past, you can make money regardless of the market if you’re educated, proactive and smart.
…but, there are times when you can get a double-whammy for your efforts and everything is easier.
Interestingly, I was listening to Charles Tarbey, the Century 21 real estate director and he said that in certain markets, an interesting and unique phenomena had been reached.
That is where rents had reached the point of repayments on the average home. Do you know what I’m talking about?
Those renting will start looking at buying because their monthly rental payments equal what the mortgage repayments would be.
All this due to interest rates coming back significantly and rents increasing on average 15-20% over the last 3 years.
I hope all this information makes sense to you.
You’ll be looking back at this period in 4 years time and if you don’t take advantage of it, you’ll be kicking yourself.
Do whatever you have to do right now to put yourself in a position to profit from a potential significant shift in real estate prices.
Accumulate like crazy… NOW is YOUR time.
Signed with Success,
P.S. I got lucky in 1995-96. But I kind of made my own luck, because around that time I was educating myself and wanted to take my own destiny in my own hands. You make your own luck.