I was rereading "Creating Wealth" by Robert G. Allen (written 1983,1986)...this book is a timeless piece of solid investing advice. Here's a part from the book. Notice how similar the market was in 1983 to right now. Just think if you invested then, how much your real estate would be worth now...even in thus current down market.
(From the book "Creating Wealth")
"Toto, I've a feeling we're not in Kansas anymore." So said Dorothy to her dog in the classic movie The Wizard of Oz.
By same token, we can say that as far as real estate investing is concerned, things don't feel the same anymore. The landscape has changed in just few short years. We are on new ground. The whirlwind that brought us from the fast-paced appreciation of the 1970s has left us in a world where, for the first time in decades, the average price of real estate did not keep pace with inflation. In some areas it even dropped!
Is the game over? Or is it possible to create wealth in real estate even if prices are falling?
It has never been easier to make a fortune in Real Estate.
Now, I know that this statement seems to defy common sense. But it's true. High interest rates, tight money, slow markets, and stagnant or falling real estate prices make it easier to make money real estate, not harder.
But everything you read in the media would lead you to believe just the opposite. Remember, the world almost always operates on faulty assumptions. And that includes the media. The key to making money in bad times is to use your common sense and to do the opposite of what the world is telling you to do. You need to understand the fundamental reasons that make an investment tick. Then you can keep your head when all about you are losing theirs."
Read Creating Wealth for greater investment understanding.
