Did you know that since 1968 there has never been a downturn in the real estate market? Let’s say that again. Since 1968 there has never been a downturn in the nationwide housing market. Come to one of our seminars, like the one coming up this Saturday, May 2, and we’ll dig out a chart that shows exactly that.
That’s not to say there have not been pockets of soft housing prices. Well, to be honest, if you looked at southern California from 1990 to 1997 you could say that local market was terrible, where properties lost about one-third of their value. California today doesn’t look too swell either.
But as we keep saying, there are plenty of other local markets around the country that are absolutely great for income property investing. Back to 1968 – since that year, real estate has appreciated annually at a rate of 6.4%. That’s an average. Some local areas did better. Some did worse. In the past 10 years, real estate has appreciated at an annual rate of 7.29%
Jump back to 1926 through 1992, which is the farthest back we could find reliable data, and the average increase was 11.1% per year. That span of time included a few wars, the Great Depression, gas shortages, the OPEC hijacking of the worldwide market in the 1970’s – in short – real estate stood up as a very profitable investment through it all. Maybe those percentages don’t impress you. Maybe you think you’re in a mutual fund that does better. Not likely. The quoted percentages don’t take into account that, if you use our strategy, you’re only putting up about 20% of the money invested for your benefit. Your bank does the rest. This magnifies your return on investment exponentially. Now we’re talking about 30% to 60% returns.
Not too shabby.
