Although I strongly believe in the power of data, I also know that it can be great to get supplemental information to help enliven the data and bring some perspective. I often look towards Bill McBride and his blog Calculated Risk Blog to provide additional macro data and information as well as how to maybe piece together everything that we're looking at. Let's face it, if you saw the movie The Big Short, sometimes it's important to be "un-trendy" before you can be viewed as trendy and smart.
Several years ago, I had a boss who thought my dad was a lucky guy to have purchased property during 2010-2013. My dad didn't accidentally fall into this position by any means. My families were one of the few whose lives didn't change as a result of the recession. I can't say it was comparable to the characters from The Big Short, but I can certainly say that my friends' lives were far more uprooted than mine was. My dad saw it coming and had spent a lot of time preparing for it in his own way. As a result, he was in a position to begin purchasing property that was very evidently cash flowing based on the rents he could charge per property. It also didn't hurt that both my mom and myself could imagine how to add value and increase the rent even more. My favorite is one property where within nearly 5 years of owning the property, we've nearly doubled the rents and had little to no vacancy. In the same 5 years, we've nearly doubled the value of the property in contrast to what my parents paid for it. Can you imagine what it would be like to get a 20% return rate every year? I would give nearly every red cent I had if I knew I could give myself such an opportunity. For these reasons, my old boss thought my dad was a lucky man. Needless to say that same old boss suddenly decided he ought to start buying more property. I think this Ted Talk is a pretty great illustration of the trend curve.
Nonetheless, I think it's important to never stop absorbing and to learn how to pick up on the right clues or put the puzzle together to create a clear picture. Real estate can be somewhat peculiar that way and we all try our best. Take a look at what Bill had to say about the few who have the attitude of the impending doom of an upcoming recession here.
Stay tuned for Sunday Funday when I share a new board from my pinterest page with a different style of house theme every week. Because let's face it, the market is one aspect of real estate, but style is another.
Several years ago, I had a boss who thought my dad was a lucky guy to have purchased property during 2010-2013. My dad didn't accidentally fall into this position by any means. My families were one of the few whose lives didn't change as a result of the recession. I can't say it was comparable to the characters from The Big Short, but I can certainly say that my friends' lives were far more uprooted than mine was. My dad saw it coming and had spent a lot of time preparing for it in his own way. As a result, he was in a position to begin purchasing property that was very evidently cash flowing based on the rents he could charge per property. It also didn't hurt that both my mom and myself could imagine how to add value and increase the rent even more. My favorite is one property where within nearly 5 years of owning the property, we've nearly doubled the rents and had little to no vacancy. In the same 5 years, we've nearly doubled the value of the property in contrast to what my parents paid for it. Can you imagine what it would be like to get a 20% return rate every year? I would give nearly every red cent I had if I knew I could give myself such an opportunity. For these reasons, my old boss thought my dad was a lucky man. Needless to say that same old boss suddenly decided he ought to start buying more property. I think this Ted Talk is a pretty great illustration of the trend curve.
Nonetheless, I think it's important to never stop absorbing and to learn how to pick up on the right clues or put the puzzle together to create a clear picture. Real estate can be somewhat peculiar that way and we all try our best. Take a look at what Bill had to say about the few who have the attitude of the impending doom of an upcoming recession here.
Stay tuned for Sunday Funday when I share a new board from my pinterest page with a different style of house theme every week. Because let's face it, the market is one aspect of real estate, but style is another.
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