A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Real Estate is a good safe investment
As we watch the stock market dropping this month, does
anyone really think this is a surprise? I have said before, I am not an stock
market expert and I have no problem with investing in good companies, but the financial
markets create bubbles as we all know and then they walk away leaving the ruins
behind for others to clean up. The easy money policies have created this recent
bubble and the Bogus China economy now going in the wrong direction is spooking
the markets. The China situation really bothers me, all these investors knew
that China never gives real numbers, but they talked it up like it was some
great juggernaut and now they are running for the hills as another created
bubble begins to fall.
Oil is also hurting the marto ket, as oil goes down, there is
fear of another recession since oil created much of the high paying jobs in the
economy in the last few years and many of the small oil companies will be going
out of business soon. This oil situation is going to get worst as Iran will be
putting their oil on the market since sanctions are being lifted. The more oil on the market, the lower the
price. Good for consumers of gas, bad for the oil companies.
With all this uncertainty, Real Estate is a great place to
invest. Prices will fluctuate but as I always say, no matter how the economy is
performing, people must live somewhere and the rental market will always be in
demand, especially here in Southern California. As we have seen in the last
couple of years the rental market has commanded great returns with maximum
rents.
The housing crash has created a huge customer base as many people who
lost their homes are skittish about becoming home buyers again, even if they
could qualify for a loan.
We may be entering into a deflationary period in this
economy and we may see interest rates continue to fall even lower than they are
now. This may be a great time for people who have thought of getting into the
investment property business to get their feet wet. I am not saying there is no
risk, but again, holding an asset like a home is much better then holding a
piece of paper that has its value go up or down according to how the wind blows.
It all comes down to the monopoly game, the one who holds
the property does not have to rely on passing go to get paid.
A.D Property Management
Management Specializes in Property Management in Orange County