Property Market Bottom in 2010
The huge real estate bubble of the early 21st century came to an abrupt end in 2007. But, with a Real Estate IRA plan, you’ll be ready when real estate starts coming back. And, a well-known UK economist, Phil Anderson, has confidently called a property market bottom in 2010.
Mr. Anderson bases his prediction on an 18-year cycle which he says has manifested itself in the United States since 1800. “The cycle is as regular as clockwork. It is quite bizarre,” he said.
“There were peaks in land sales or real estate speculation in 1818, 1836, 1854, 1888, 1908, 1926 and 1944. The peaks were followed by downturns or depressions, typically lasting four years. World War II disrupted the pattern. But the cycle resumed in 1955.
The real estate market in the US again peaked in 1989 and bottomed in 1991. And 18 years later, in 2006-07, it hit another high. We are now into the third year of downturn, so by next year the market should bottom, which will mark the beginning of the new 18-year cycle.
There will be substantial real estate buying opportunities for people with cash next year, which will set them up comfortably for the next 18 years,” the founder of Economic Indicator Services told The Business Times.
As far as we have been able to determine, the cycles that Mr. Anderson quotes seem to be accurate. Regardless, most of the pros believe the bottom will be somewhere in the next 9 to 14 months.
So, what does that mean for Self Directed IRA Real Estate investors? Just one thing…get prepared. Do your homework. Learn everything possible about your local market.
If you’re a novice, join a local real estate investment club. Hook up with someone who will mentor you and learn the fundamentals of real estate investing.
If you’re a seasoned pro, go out and start putting together pools of investors (especially one’s who would like to use Self Directed IRA funds). Then, find the deals. By late this year, the bottom should be forming and the buying opportunities will be everywhere.
Safeguard Financial will help you, or your investors, set up an IRA LLC or Solo 401(k) so that you can take maximum advantage of the opportunities. Give us a call today at 877-229-9763 or go to www.IRA123.com and fill out one of our contact forms.
