We have all heard the saying what goes up must come down. We hear stock brokers tell us to buy low and sell high, then when it goes down again, repeat that process. We know from physics class that "for every action, there is an equal and opposite reaction" and it is for this reason that no one should be surprised that when the real estate market went up too fast that it would also come down with the same velocity.
What if your house always increased in value and you did not have to worry about a downturn in the economy or housing bubble burst? What if you were not worried about your homes equity becoming negative or becoming upside down in value to your borrowed amount?
What if you did not have to worry about interest rate hikes? What if the pending foreclosures because of the subprime lending fallout, recession, future lay offs or changes in our economy did not affect the value of your property? What if your area was one of those great expanding areas to carry your investment forward - forever and what if you did not worry everyday that the housing bubble would burst, prior to that inevitable potential eventuality?
What if you did not have so much of your family's investment in real estate at the top of the market; what if we had better control of our Nation's economy and you felt safe right where you are with regards to the housing issues?
What if you had a crystal ball telling you everything was going to be fine, one, that would also warn you before all the ice melted? What if you trusted your mortgage broker, banker, real estate person and the person who sold you the house and they gave you the perfect advice every time? What if you had extra money would you buy another property; income property or rental home, during the buyers market?
If all this happened would you enough money to help your kids with their first home? Could they afford to live in your area if the housing and real estate prices keep going up? Ah indeed, what if. . . What if Real Estate Prices Always Went Up? Think on this, as it is something to contemplate in 2008.
Lance Winslow
Excellent post in the questions that you pose.....I will not bother to respond here, but we've definitely thought of many (and you've made me think of many more....) just by reading your profile, and going to your main site. Very few people really make me think, and even fewer tire me out....congrats....on the day after christmas, you have done both!