Where, on this great planet of ours, are you going to find universal need? If you’ve been following this blog series on Jason’s 10 Commandments of Successful Investing, you’ll realize we’re up to #9 – thou shalt only invest where there is universal need.
Where do you find universal need?
Residential housing, that’s where. Do you need a stock, bond, or mutual fund to live? Er, no. Do you need a place to live? Do you sort of like having a roof over your head? Homeless population notwithstanding, the answer is “yes.” Basic law of supply and demand would indicate you should invest where there is a reliable, constant demand. With the present rate of foreclosures and tightened lending from banks, it’s a pretty safe bet that this most universal of needs is about to get even more so, if that’s possible.
As the world gets richer, there will be continuous upward price pressure on developed real estate. If you own the real estate, that’s good news for you.
What about commercial property? It’s not bad but can’t really compare to residential. Businesses can (and do) outsource customer support and factories overseas. They outsource retail to the internet. These factors lead to a lessening demand for commercial real estate.
Let’s say it again. Everybody needs a place to live and a place to sleep. That simple fact of life is why the Platinum Properties Investor Network remains focused on finding and recommending income producing residential properties.