No one knows what to expect in the real estate industry and U.S. real estate may be a safe haven for investors. There is no concrete evidence to indicate what will happen in the next six months. The way it goes down will have an effect on the next generation to come. Investors do not have anyone to give them directions at this time and the list of possibly detrimental occurrences is long.
On the global scene looms the attack Israel made on Iran, the explosive situation in Syria and Egypt likely to convert to an Iran-like government. The U.S. presidential election is coming up, there are banking problems in Europe and Obamacare being both welcomed and criticized will no doubt have an impact.
If Obama is reelected, there will be more stringent EPA regulations put into place. Spain and Greece may or may not stay on the Euro currency. There is going to be a change with U.S. energy needs becoming less dependent on overseas oil supplies.
While no one will label Pakistan as stable, there may be relative stability there for now. Also, as always, there is the possibility of a terrorist strike somewhere in the world. The terrorists have it in for so many individual nations, it is impossible to predict where.
Among the many effects of instability is the prevention of corporate expansion. Hiring is at a minimum and investors take as little risk as possible. What occurs in the next two quarters is going to determine what direction economies all around the world will move in.
U.S. real estate may offer one of a small number of safe places to invest. Value increases are likely. A buy at a fair price that will provide an attractive cash flow is going to be appealing. It is said that real estate values will not decline again in a serious way in the U.S.
If inflation occurs in a couple of years and the stimulus leads to growth, landlords can once again command good rental rates. With rental property, there is a tangible component that is very comforting in uncertain times. Stocks and bonds are not profitable and not expected to be for years. Commodities and currencies are very unpredictable and gold is not paying anything.
What does that leave for an eager investor? It leaves real estate.