Long-term Investment in Real Estate
PUTTING CONCERNS REGARDING THE REAL ESTATE CYCLE
The real estate market is known for its cycles, and the current state of contraction has many investors concerned. Certainly, it would not be ideal to lliquidate a property within the next 3-5 years. But if you had time on your side, with 10... 20... or 30 years before you need the equity, real estate investments are likely to be an extremely profitable endeavor.
Traditionally, real estate cycles at least once or twice every 10 years. It appreciates at a rate far greater than the rate of inflation. In both good and bad economics, real estate values have steadily risen year after year, proving that it’s one of the most solid, steady, tangible and profitable investments you can make.
Real Estate Market Value Cycle
CALIFORNIA POPULATION CONTINUES TO GROW
Each year, a half-million people add to the growth of California. Most settle within a 60-mile radius of major metropolitan areas, specifically San Francisco and Los Angeles. The commute within this distance is usually bearable, allowing for more affordable housing at the outskirts area.
Identification of areas set for growth is the key to profitable long-term investments. Our method has been devised for property selection, with the flexibility of growing the investment in a self-directed IRA account.