Investing in a degressive economy

2007-11-05T14:51:00.000-08:00

While it is true that the housing market and mortgage market are spinning in a large economic toilet right now, there is hope. Like every situation in life one persons misfortune creates opportunities for someone else. The New home construction and single family home markets are seeing dismal sales but is this really a shock? Were prices really going to continue appreciating at 15...20...25% a year for ever? NO! its simple economics much like gravity, the laws of supply and demand have to come into play. And like gravity when the markets falls some people might get hurt when they hit the ground. But in this catastrophic time for new home buyers and single family dwellers there creates a need. If people are not buying houses where are they living? Increased mortgage standards have left many would be home buyers on the outside looking in. These wanna be home owners like many others have no choice but to continue renting. Renting is the key to life in this market right now. While it is true that home prices sky rocked over the last 6 years, prices among multi family homes have increased at a much slower pace. In times of slow economic growth doesn't it make sense to put your money in a market that has relative price stability in comparison to its free falling deflationary sibling the single family home. Plus you might as well ride out this recession collecting rents from tenants that help you pay your bills .

Armour Street Investments

Investing in a degressive economy