Examining Your Portfolio

Record losses, depreciation and short sales. Sound like the real estate market? Well, it actually describes last week's activity in the stock market. Chicken Little went running and yes, the sky did fall.

Many of us were impacted the week of September 15th by the extreme volatility in the stock market. Reported losses didn't have anyone jumping out of windows as they did in 1929, but many people are examining their investment portfolios. Now money market accounts, traditionally viewed as safe investment tools, are in question. Money managers are mixed in their opinions about where to invest.

In our opinion (and Donald Trump’s if you saw him on Larry King Live this week), now is the time to invest in real estate. Yes, we've seen losses in the current market and no one knows when it will turn around. However, the current conditions present many opportunities for buyers. Prices are lower than they have been in years.

If you remember the most important aspect to real estate investment...location, location, location, you'll be a winner. If you find a property you deem to be a good investment, buy it and expect to hold it for a few years. We all know that real estate values are cyclical. By having a tangible investment, especially in resort towns like Provincetown, Truro and Wellfleet, you can expect some appreciation in the coming years. Also, there is the potential to generate extra income through rentals.

Considering how the mortgage industry has become stricter in qualifying buyers, if a lender is willing to finance a purchase in this market, then you know the property is worth it. If you are a cash buyer....you are king and queen once again.