You can always build a Real Estate portfolio, no matter what the market is doing. There is always something to buy that will fit your criteria, it’s just harder to get some times. My real question is why anyone would want to build a portfolio today because of all the deep pocket investors that are flush with cash. I look at Ballard as the perfect example. All of those apartment buildings have given new life to Ballard, but it may not be the life Ballard wanted.
Massive development has brought in thousands of housing units that cater to renters, who may become life time renters. There is no reason not to be a renter if you can make better equity by managing your money, and outside investments. Many people use gold as an example. If you saved your down payment money with gold purchases over the past ten years you may have made a profit better than other savings vehicles. I personally don’t like gold it’s just a topic that gets thrown into the housing bubble mix.
That’s right, I used the example of the housing bubble. We had a major Real Estate market crash in 2008. Since that time the Federal government has done everything it could to prop up the price of property and created another bubble through deep pocket, all cash investor buying. Those Real Estate purchases have been for returns no greater than 6%, but there may well be some price appreciation based on when, and what the investor bought.
I see other opportunities for cash, but Real Estate may be safe with the backing of the United States government. I have been wrong before, and will be again, but I don’t see how a small portfolio investor is going to come out well in today’s market place. To me it’s a sever gamble to build a Real Estate portfolio. I’d wait until the Fed moves on to building a stronger economy.