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Real Estate Investing in a Crisis Market

Aug 15, 2008
You've probably heard someone who invests in the stock market say, "There's always a bull market somewhere." That simply means there is a way to profit whether share prices are going up or down.

A few experienced real estate investors feel the same way about the real estate market. There are ways to profit not matter if property values are going up or down.

Real estate can be a better investment than stocks because some properties are always going to be as good as gold. I place the following in that category:

1. Beach Front

2. Lake Front

3. Property with a unique view.

Stop and think for a moment about what makes almost anything valuable? At the top of that list should be limited supply when compared to demand. That's what you get with most any water front property.

Some of the world's most valuable real estate is breach front property. There is no denying that even it may drop some value in a major financial crisis, but it won't stay down long. How much value do you think a beach front home in Malibu, California lost during the housing crisis of 2008? Very little of any, is the answer.

Beach front property is very limited in supply and they aren't making any more. It's not like middle class housing where developers just move a little farther out from the city center and build a few thousands more homes to satisfy demand.

In an effort to protect costal ecology federal and state governments now make it very difficult to build on beach fronts. Those laws and regulations tend to drive up the value of the few homes and lots that are available.

The same holds true for prime lake front property. The value of a lake front home at Lake Tahoe, California has gone through the roof in the last ten years.

Blue chip quality even extends to some mountain side or cliff top properties that provide a dramatic view. Not quite the sure-thing as beach front property, but still a valuable investment.

Smart investor welcome a downturn in property values, because some of these uniquely located properties will become available at irreplaceable prices. Not rock bottom prices, but low enough to insure a "can't miss" investment. These rare properties are the first to recover after a downturn, so investors often find themselves in a profit position within a few months.

What if you can't afford the prices of waterfront property even during pull backs? All is not lost. Some of the world's greatest beach front bargains are available right now in places like Costa Rica, Panama, Honduras, Belize, Ecuador, Uruguay, Brazil, Spain, Croatia, Malta and other countries around the world.

Wonderful countries with friendly people and stable governments, not to mention that each has a cost of living dramatically lower than that of North America or Western Europe.

For the cost of one beach front home in Fort Lauderdale, Florida, you could by 10 homes on the beach at Fortaleza, Brazil.

The sad truth is that many Americans will not be able to afford a comfortable retirement if they remain in the U.S. as the politician's unbridled spending drives down the value of the dollar. The cost of living in many Latin American countries is a fraction of that in the U.S.

Retirees with modest savings will be looking for beach homes in these foreign countries. Demand will drive up value, but right now you can buy a modern beach front condo for as little as $40 thousand U.S. dollars.

Low prices in Latin American beach areas are attracting offshore buyers from all over the world. It's the chance of a lifetime for those adventurous investors who are willing to spend some time in an area and learn the local customs and buying procedures.

There's always a bull market somewhere, and right now it's at the beach.
About the Author
Mark Walters is a third generation real estate investor and founder of CreatingWealthClub.com. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free. Free guide to private money loans. http://www.FindPrivateMoney.info
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