Ignore the headlines? . . . that's what Time Magazine says in their most recent February 2008 issue, quoting famed Money manager Peter Lynch. Lynch was the former manager of one of Fidelity's best-known mutual funds in the 1980's, Fidelity Magellan.
This article pokes fun at all the "chatter and ink" on recession, housing, subprime woes, the credit crunch, as well as rogue traders, involvent bond insurers and other global news.
The following are parts of the article:
So, . . . Why, during all this, is it a great time to buy real estate?
Their sample comparison chart on the purchase of a home now, versus 12 months from now, describes a very valid answer! If qualified buyers are waiting to find the "bottom of the market", then they may be losing time and gaining nothing.
Perhaps some of you might recall the housing recession of 1980. It was one of the worst markets, with the prime rate at 21% and convention mortgages at 18%. Wrap-around mortgages and buy-downs were just about the only way to get most buyers "qualified."
It was a much tougher market for me than we are experiencing today. I guess you might call me a real estate "dinosaur", . . . having started my career in 1976! ;-)
For more information about our local market in the New Bern, NC area, feel free to visit my website.
I wanna be you when I grow up! You always have an eye open for the news and never hesitate to share. You mentioned the 80s... I was on the buying side of that mess. Went with an investor co-owner to get us in the house.
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