Investors Eye Real Estate as Stock Prices Fall

Have you payed any attention to the global economy lately?
If not, you may have felt it in the form of your 401K or any other investment vehicles you may have.
The stock markets have been falling significantly for the past couple of days and we’re not talking a few points here and there, yesterday the Dow suffered it’s biggest decline since December of 2008.
There is so much uncertainty right now, many investors are jumping ship to avoid a total catastrophy yet as many bail out, the downward pressure intensifies in the markets.

So what is one to do in such times?
If there is one positive out of this, is the current state of mortgage interest rates.
As the market plumets, it drags interest rates along with it giving hopeful first time home buyers and investors something to smile about. So as the stock market suffered it’s biggest loss in almost 3 years, interest rates hit a new low.
The panic in the market is caused by fear and uncertainty of what will happen next. Will more companies go under? Will other nation such as Italy or Spain default?

Why should you invest in real etsate?
Simple, stability.
When was the last time you heard real estate and stability used together?
But it’s true! Today’s shareholders run the risk of loosing all their investment should the companies they own stock in go under. Same goes for those invested in Sovereign debt if the countries default on their obligations.
But let’s talk real estate. If you were to invest in real estate, whcih if you ask me looks attractive regardless of what is happening on a global scale. You have Affordability not only in home prices but as mentioned earlier, record low interest rates. Now you might be thinking, what if home values fall even further? Well, unlike your stockholding counterparts who lost it all and are holding worthless paper, you own a rock solid peice of real estate! It’s not going anywhere (baring any natural disasters) You may even decide to become a landlord and collect rent. Does the home’s value affect what rent you’re collecting? In most cases, No!

The Bottom Line: As fear drives the financial markets downwards, Real Estate will always be a safe investment not only for you but for your family as well.

*Before acting on information on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

About Daniel Di Matteo

Realtor at CENTURY 21 Award, Daniel was Voted U-T San Diego’s Best Real Estate Agent in 2014. A Husband, Father, and most recently, accomplished Blog writer, which explains your visit today.