“A little knowledge that acts is worth infinitely more than much knowledge that is idle.”
Kahlil Gibran

A once-in-a-lifetime property market for investors
By Dean Graziosi

Think now isn’t a good time to get into the property game? Think again. I'm seeing a fusion of factors that are creating once-in-a-lifetime opportunities for potential investors.

1. The “irrational” markets are over.

The wild appreciation in property values over the 10-year period is over. There’s no argument from anyone on that point. Combine that with the failure of huge banks and home lenders, and you have a very tight money market restricting any short-term price growth.

2. Prices are flat or down just about everywhere.

This may sound ominous, but it’s far from negative. Never before have homes in great neighbourhoods been available at such depressed prices. There are foreclosure bargains in every price range. It’s a true buyer’s market.

3. Those who lost their homes must rent.

Rental demand is increasing, and should do so for years. Those who lost their homes to foreclosure must rebuild their credit. And before they’ll be able to purchase again, lenders will require them to make larger down payments and meet stricter requirements. So they’ll be renting for a long time to come.

Remember, a large percentage of those foreclosures happened because people made poor choices when they got their bonds - not because of financial misfortune. Many foreclosure victims are still employed and can pay market rental rates, and they are likely going to rent something similar to their previous home.

One of the sayings I live by is “Knowledge plus action equals results.” To be a successful real estate investor, you need to be constantly adding to your knowledge base - especially when it comes to:

• Current national real estate sales and price trends
• Local trends that influence where people want to live
• Local employment, industrial, and job creation activities
• Neighbourhood dynamics (whether the population is growing or declining)
• Resources for everything from loans to renovation

Knowledge comes from many sources and directions. Make sure you get your information from someone who is active in the current market - not someone stuck in the pre-bubble days.

Of course, as Robert Ringer and Michael Masterson have said many times, knowledge doesn’t do you a lick of good unless you get off your butt and do something with it. This means taking action - turning over every rock, investigating every property investment that sounds good, and moving on the best ones.