Can you make money in Real Estate in 2008?

So we were at a wonderful New Year's Eve bash the other night, and as I listened to the conversation swirling around me (I had had too much Shiraz, and my mouth wasn't working for once), I realized that most of us are obtaining our Real Estate information from each other. My neighbors are smart people (not to mention very good looking), but the problem is that most of us have only a piece of the picture, and pieces of the picture aren't enough to help make good decisions.


There IS some good news coming out of the economic disaster that is currently looming thanks to the Real Estate market.

First, some sad assumptions:

The Real Estate market (meaning home prices and sales levels) will not "recover" in 2008. With doom and gloom being washed over us daily, coupled with the foreclosure wave that is still approaching the Northeast, we are in for a few years of difficult times in Real Estate.

Your home is NOT worth what is was 1 year, 2 years, 3 years ago.


However, think about this:

Your home, and Real Estate in general is, for most people, your most lucrative investment. (See this article)

Consider retaining, or purchasing rental property. The need for rental property is skyrocketing (see RealtyTimes), and the prices to purchase are low.

This is a business cycle, and like all business cycles, will make many, many people much, much money, as those with a little bit of money now will be able to invest low, and ride it out.

More later....