Article by: Curt Sutherland
I heard that same statement in the 1970’s and then again in the 1980’s. Then in the 1990’s they said it again, and in the 2000’s, and the 2010’s. Here we are in the 2020’s and I’m hearing it again.
The funny thing is that all of the real estate investors that I know, myself included, are buying, refinancing, and developing real estate projects constantly.
The reason is because we all know the same thing: properties will never again be as affordable as they are today.
Think about something that we use daily like gasoline. In the 1970’s I was buying gasoline for my after school lawn-mowing business for $0.17 per gallon. Today a gallon of gasoline costs me $4.85 for my car. If I waited for the prices to come down, I never would have purchased another gallon of gasoline. Many people hunt for the lowest prices when they go from gas station to gas station, but at the end of the day, they almost always purchase gasoline.
Investors that are wise enough to purchase real estate right now, using todays lower interest rates, are going to find in the future, that they have purchased bargains.
If you think real estate prices are high today, just wait fifty more years and try to buy something then. Alaska was purchased for $7,200,000 and Louisiana was purchased for $15,000,000. I’m sure that seemed like a lot at the time, but today, it looks like it was a bargain.
Almost everyone is able to sell their real estate at a profit because if you keep the property in decent condition, it will, over time, appreciate in value.
In reality, it’s not so much that property values are rapidly increasing, it’s that the value of the dollar is rapidly being devalued. It simply takes more dollars to buy something that holds its value today than it ever has in our lifetimes.